I have a copy of the book published by Alazhar University, Cairo which contains the FATWAS by Prof. Mahmood Shaltoot. One of the FATWAS is that Jesus (as) is dead [, not resurrected].... If this fact is proved, then it will be InshAllah a BIG VICTORY for Islam.
There is an unending debate in Islamic discourses about the nature of the end of Jesus' life on earth.
The words used in the Quran to describe Jesus' death are: "Moutawaffica wa rafiouka elayya." This translates to, "I am completing your term and raising you up to me."
Some interpreted this in a miraculous sense--as the physical rising of Jesus.
However, others interpret this expression as a description of an ordinary death. Indeed, that is how Sheik Shaltoot, one of the greatest Muslim minds, explains the passage. He bolsters his point of view by citing other Quran passages about ordinary death that contain the same or similar words.
About the place of the burial, certainly nothing is confirmed. To me it sounds more like folklore, but God knows best.