Israel OK's 900 new housing units in Jerusalem
"The planning and construction committee has authorised the construction of 900 housing units in the Gilo neighbourhood in Jerusalem," it said.
The project still faces review and will be subject to court petitions by the public, an official told AFP.
The move comes as the United States is pressing the Jewish state to halt its settlement activity as it tries to bring Israel and the Palestinians back to the negotiation table.
The international community has repeatedly criticised Israel for building on occupied Palestinian lands, which Israel seized in 1967 but where the Palestinians wish to build their future state.
On Monday, an Israeli daily reported that Prime Minister Benjamin Netanyahu has declined a US request to freeze a project in Gilo, on the southern edge of Jerusalem.
Asked to comment on the report, a senior Israeli official would say only that Netanyahu "is ready to show the maximum restraint when it comes to construction in Judea and Samaria (West Bank) to help restart negotiations, but this policy does not apply in Jerusalem, our capital."
Jerusalem Mayor Nir Barkat said in a statement he "strongly objects to the American demand to halt construction in Jerusalem and will allow construction for Jews, Muslims, and Christians in any part of Jerusalem without prejudice."



