The allegation runs counter to other Israeli assessments and stands in stark contrast to public and private statements by the Palestinians.
Mr. Lieberman did not provide evidence for his claim that Palestinians were getting ready for violent demonstrations. Mr. Moshe said Mr. Lieberman drew his conclusions from intelligence reports and public statements by Palestinian officials.
He said the foreign minister will ask the government to cut ties with the Palestinian Authority when the Cabinet convenes again next Sunday.
With peace talks stalled since 2008, the Palestinians have said they will instead ask the United Nations to recognize their state in September. Israel and the United States strongly oppose the move, saying Palestinian statehood should be achieved through negotiations.
Palestinian spokesman Ghassan Khatib denied the Palestinians were preparing for violence.
“These Israeli predictions of violence aren’t true. Israel is trying to fuel a fake picture of what will happen in September,” he said.
“In September, we will request the international community’s help - legally and according to law - from the U.N. to help us end the illegal occupation. What is illegal here is the occupation, not the attempts to end it.”
One Israeli fear is that Palestinians will re-enact scenes from June, when some 20 protesters were killed after thousands rushed Israel’s border from Syria.
On Sunday, Mr. Lieberman said the Palestinians are planning to have tens of thousands of protesters storm Israeli checkpoints in the West Bank, an act that would likely end with violence.
“The Palestinians are getting ready for bloodshed on a scale we haven’t seen before,” Mr. Lieberman said, according to his spokesman. “The more they speak about nonviolent action, the more they are preparing for bloodshed.”
An internal Israeli parliamentary report released last week predicted a low likelihood of violence erupting, because the Palestinians believe it would be counterproductive to their cause. The report, which was based on intelligence reports, said mass peaceful demonstrations were likely instead.