Israel says it has approved the construction of 1,100 homes in a Jewish settlement in East Jerusalem.
It comes days after the Palestinian call for full UN statehood, although the Interior Ministry’s announcement contains “nothing new” according to the Israeli prime minister.
Benjamin Netanyahu has implied he has no intention of halting new settlements in the West Bank and east Jerusalem.
The US has repeatedly urged Israel to stop building on occupied Palestinian land.
The Palestinian leader Mahmoud Abbas repeated at the weekend that he would not negotiate with Israel without a “complete” freeze on construction.
An Israeli newspaper says the latest move could complicate efforts to restart peace negotiations between Israel and the Palestinians.