Israel plans to build 1,400 new homes in Jewish settlements in the West Bank and East Jerusalem, territory the Palestinians claim for their state.

Israel's housing ministry announced on Friday that 800 new houses would be built in the West Bank and 600 in East Jerusalem – a contentious move that is likely to further hamper the progress of peace talks led by the US secretary of state, John Kerry.

Saeb Erekat, a leading Palestinian negotiator in the peace process, said Israel's announcement was an indication of its "commitment to the destruction of peace efforts and the imposition of an apartheid regime.

"This Israeli government is openly displaying its true agenda. The announcement of yet more settlement units at this particular moment is a test for the US administration's ability to hold Israel accountable for actively sabotaging their efforts for peace.

"Such an announcement should also serve as a reminder to the international community to sever all ties with the Israeli occupation."

The announcement had been expected as a concession to Israel's rightwing nationalist lobby after the Jewish state released 26 long-serving Palestinian prisoners in late December, part of a deal made last summer when Israeli-Palestinian peace talks resumed.

The Israeli prime minister, Binyamin Netanyahu, has previously issued similar construction announcements to blunt hardline criticism at home of prisoner releases, as many of those released were convicted of killing Israeli civilians and soldiers.

Friday's announcement was apparently postponed until after a visit by Kerry, who was in the region last week.