Jerusalem: Israeli Prime Minister Benjamin Netanyahu has approved the marketing of land for the construction of 454 homes in two settlements in occupied East Jerusalem, according to a government official.

The building of 436 of the housing units, in the settlement of Ramat Shlomo on land Israel occupied in the 1967 Arab-Israeli war, was approved in 2012, but the project was later frozen in an apparent attempt to avoid friction with Washington.

Palestinians carry an injured man during clashes with Israeli troops, after the funerals in the West Bank city of Ramallah on Monday. Credit:AP

US Vice-President Joe Biden publicly scolded Israel when construction plans for Ramat Shlomo, which is in territory Palestinians seek for a future state, were first announced in 2010 while he was visiting Jerusalem.