Or abolish Israel altogether.
The Jews were there in the time of Christ so they have first claim, way way before Muslims!
At the time of Christ, Jerusalem was "owned" by Rome. This followed quite a long period of Babylonian, Persian and Greek ownership with a short period of less than 100 years of Jewish rule. Before that you had the two kingdom period. The Northern Kingdom (confusingly called Israel even though it didn't include Jerusalem or any land south of Jerusalem) had already collapsed in the 8th century BCE and was owned by Assyria.
So, apart from a short period in the second and first century BCE, Israel last existed as a single independent political state about 3,000 years ago. To put that in perspective, if we said Britain should be returned to the people who ran it at the time of Christ, we'd have to let Wales run England, and going back 3,000 years, well, I doubt even the Welsh would have a claim.
The Jews have no rational claim on Israel, but religion is involved so rationality doesn't matter.
Oh, and if we turn to Jewish mythology, we find that the Israelites took that land by force in the first place, committing genocide several times on the way.
