(Adds quote from U.N. secretary-general)

JERUSALEM, July 11 (Reuters) - The United Nations and Israel denied an Israeli newspaper report on Wednesday that the world body had requested Israel transfer the disputed Shebaa Farms area on the Lebanese border to U.N. peacekeepers.

"The U.N. has not asked the government of Israel to hand over the Shebaa Farms to the U.N.," a U.N. official said.

The Haaretz newspaper reported that the United Nations, which has long held the Shebaa Farms were inside Syrian territory occupied by Israeli forces in the 1967 Middle East war, had now determined the zone was inside Lebanon.

U.N. Secretary-General Ban Ki-moon said in London that discussion of ownership of the land was premature.

"I have submitted my report on this issue. My senior cartographer has made good progress but this report is not mentioning anything about ownership or sovereignty yet," he told journalists after meeting British Prime Minister Gordon Brown.

The U.N. official in Jerusalem said the world body's cartographer was continuing work and would be visiting the Shebaa Farms area shortly.

Israeli officials also denied the report.

Syria and Lebanon say the 15-square-mile (39-square-km) disputed patch is Lebanese. The Lebanese villagers show visitors their deeds to land in the area.

Haaretz said the United Nations had proposed to senior Israeli government officials that Israel withdraw from Shebaa Farms and that the area be considered international territory to be controlled by U.N. peacekeepers in Lebanon.

It said Israel was treating the issue "with kid gloves" out of concern that a public statement by the United Nations could lead to renewed conflict with Hezbollah guerrillas.

Israel and Hezbollah fought a 34-day war last year.

The U.N. Security Council resolution that halted the fighting asked Syria to sign with Lebanon a clear border agreement.

Beirut has proposed that the Shebaa Farms should temporarily become an enclave controlled by U.N. peacekeepers until a border agreement is reached.

In September, Israeli Prime Minister Ehud Olmert said Israel would be willing to discuss the status of the Shebaa Farms, but only if Lebanon disarmed Hezbollah. (Additional reporting by Sophie Walker in London)

AlertNet news is provided by