Israeli archaeologists have announced that ruins long thought to be of an ancient synagogue are actually the remains of a palace used by Muslim caliphs 1,300 years ago.

The site on the banks of the Sea of Galilee was identified as a synagogue in the 1950s because archaeologists found a carving of a menorah, a seven-armed candelabra, that is a Jewish symbol. But scholars say in a new report that the identification was an error....