The Arab League will ask the United Nations to grant full membership to a Palestinian state within the 1967 borders, the Wafa news agency reported on Thursday.
"A decision was made to request the UN to recognize a Palestinian state with the capital in East Jerusalem and also grant Palestinian full membership at the UN," Arab League Secretary General Nabil Al-Arabi was saying on Thursday.
The organization said it would prepare documents to endorse the bid at the next General Assembly meeting in September in New York.
The plan is opposed by Israel.
The Palestinians hope their state will include the West Bank, Gaza and East Jerusalem - territories occupied by Israel since the 1967 war.