“We will not allow the opening of any diplomatic representation to the Palestinians in Jerusalem," Israel’s Foreign Minister Eli Cohen told the country’s Radio 103FM on Sunday.

Israel knew that Saudi Arabia planned to appoint a non-resident ambassador to the Palestinians but the matter was not coordinated with Israel, Cohen said.

He suggested that the Saudi step came “on the background of the progress of the talks between the US and the Saudis regarding normalizing ties with Israel."

"The Saudis wanted to send a message to the Palestinians that they didn’t forget them. But we don't allow countries to open consulates. It's incompatible with our position," Cohen added.

"The Palestinian matter is not central in talks, since the Likud, led by Prime Minister Benjamin Netanyahu, brought the recent peace agreement, it means that the Palestinians are not a barrier to peace. That is not the matter that will prevent it.”

On Saturday, Saudi Arabia named a non-resident ambassador for the kingdom in Palestine who will also serve as consul general in Jerusalem, a new position announced amid speculation about possible future ties with Israel.

The role will be filled by Nayef al-Sudairi, the current Saudi ambassador to Jordan, according to a social media post from the kingdom's embassy in Amman that was confirmed by a foreign ministry official.

The appointment represents "an important step" underscoring the desire of King Salman and Crown Prince Mohammed bin Salman "to strengthen relations with the brothers of the State of Palestine and give it a formal boost in all areas," Sudairi said in a video broadcast by the Saudi state-affiliated Al-Ekhbariya channel.

The file for the occupied Palestinian territories has traditionally been handled by the kingdom's embassy in Amman.

Saudi Arabia does not recognize Israel and did not join the 2020 US-brokered Abraham Accords that saw Israel establish ties with two of the kingdom's neighbours - the United Arab Emirates and Bahrain.

But during US President Joe Biden's tour of the Middle East last year, the Saudi civil aviation authority lifted overflight restrictions on "all carriers," paving the way for Israeli planes to use Saudi airspace.

In June of this year, during a press conference with his American counterpart Anthony Blinken in Riyadh, Saudi Arabia Foreign Minister Prince Faisal bin Farhan confirmed that normalization with Israel is in the interest of the region, but stressed that the Palestinian issue must be addressed first.

Yet, in recent months, Riyadh and Washington have held talks on Saudi conditions for progress on normalization with Israel, including security guarantees and assistance with a civilian nuclear program with uranium enrichment capacity, according to AFP citing people briefed on the meetings.

While admitting there are many obstacles facing this possible agreement, Cohen said: “Looking at the data, I think we can reach agreements. It’s complex but possible.”

The Israeli foreign minister estimated that normalization between his country and Saudi Arabia could happen in 9-12 months, according to the Israeli JPost newspaper.