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What would be the necessary steps to make Jerusalem an independent country like the Vatican City State? And is this even feasible?

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For a country to be considered an Independent State it should

  1. Start acting like an independent state.
  2. Get other countries to treat it like an independent state.

The history of the Vatican state is complex. Throughout the Medieval and Early Modern period, the Pope was "king" over quite a large part of Italy. So there had been a "State" ruled by the Pope for a long time. These lands were seized by Italian Nationalists in the 19th century, but the Italians agreed to allow the Pope to control a small amount of land around the Vatican. The Pope continued to be ruler of this parcel of land. The Vatican acted like an independent state, and the Italians, and other nations treated it like one. It's status is recognized by the International community.

For Jerusalem to become an independent state, the various groups that claim it would have to agree, since an Independent Jerusalem would be too small to defend itself against its neighbours.

However this does not seem feasible. When Italy agreed to allow the Pope to keep an independent city-state, it was in the context of a single Catholic country. For both Israel and the Palestinean Authority to choose to give up what they both claim as their capital seems far-fetched. While it could happen in the context of a wider peace agreement, there is no sign that either side is currently willing to give up its capital city.

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    Indeed. There's even been proposals to do exactly this: Make Jerusalem an independent/UN-controlled city. None of them have gotten any traction.
    – Bobson
    Commented Dec 13, 2017 at 22:54
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I have to admit that the idea is somewhat intriguing.

The main problem I can see rightaway is that who will "own" it ? The Jews, the Christians, the Muslims, all 3 of them ? have a Triumvirate or have it under international (UN) jurisdiction?

And how will that solve the Israel/Palestine problem ?

They will continue to fight over territories (among other stuff).

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    I'm not clear this is an answer.
    – user9389
    Commented Dec 13, 2017 at 18:34

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