Israel approved a plan on Wednesday to build 184 housing units in Jerusalem beyond the Green Line in the West Bank. Critics say the decision has the potential to set back ongoing peace talks between Palestinians and Israelis over each other's territory.
Israel claims the units are needed to provide housing for the future generation.
"New construction in Jerusalem is necessary for the benefit of all sectors and for young people to be able to live and buy apartments in Jerusalem," a Jerusalem Municipality spokeswoman said according to NewEurope.com
The spokeswoman said the land for the units was bought by a private real estate company a few years ago. The municipality approved permits for 144 housing units in Har Homa, and 40 more housing units in Pisgat Ze'ev. Both are neighborhoods in territory annexed by Israel after the regional six-day war in 1967. The Green Line refers to the boundary with the West Bank set up before the war.
The settlements, considered against international law, are seen as a major hindrance for peace negotiations between Palestinians and Israelis.
Yosef Allo, a city council opposition member in Jerusalem, suggested the approval means the city thinks Israeli Prime Minister Benjamin Netanyahu has given up on reaching an agreement with Palestine.
"The municipality knows perfectly well that building beyond the Green Line, especially in Har Homa, hurts the chances of reaching an arrangement with the Palestinians," Allo said, according to Israeli news source Haaretz.
The new houses "reduces [U.S. Secretary of State John] Kerry's ability to achieve what we all want- an agreement in which we separate the Jewish neighborhoods from the Arab neighborhoods, with two capitals.
"We are going to lose our last hope," Allo said.
Construction for the units is expected to begin in the next few months, NewEurope.com reported.