In 1099, Bethlehem was captured by the Crusaders, who fortified it and built a new monastery and cloister on the north side of the Church of the Nativity. The Greek Orthodox clergy were removed from their sees and replaced with Latin clerics. Up until that point the official Christian presence in the region was Greek Orthodox. On Christmas Day 1100, Baldwin I, first king of the Frankish Kingdom of Jerusalem, was crowned in Bethlehem, and that year a Latin episcopate was also established in the town.
In 1187, Saladin, the Sultan of Egypt and Syria who led the Muslim Ayyubids, captured Bethlehem from the Crusaders. The Latin clerics were forced to leave, allowing the Greek Orthodox clergy to return. Saladin agreed to the return of two Latin priests and two deacons in 1192. However, Bethlehem suffered from the loss of the pilgrim trade, as there was a sharp decrease of European pilgrims.
William IV, Count of Nevers had promised the Christian bishops of Bethlehem that if Bethlehem should fall under Muslim control, he would welcome them in the small town of Clamecy in present-day Burgundy, France. As such, The Bishop of Bethlehem duly took up residence in the hospital of Panthenor, Clamecy, in 1223. Clamecy remained the continuous 'in partibus infidelium' seat of the Bishopric of Bethlehem for almost 600 years, until the French Revolution in 1789.
Bethlehem—along with Jerusalem, Nazareth, and Sidon—was briefly ceded to the Crusader Kingdom of Jerusalem by a treaty between Holy Roman Emperor Frederick II and Ayyubid Sultan al-Kamil in 1229, in return for a ten-year truce between the Ayyubids and the Crusaders. The treaty expired in 1239, and Bethlehem was recaptured by the Muslims in 1244
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