Building will take place in three Jewish neighbourhoods all considered illegal settlements under international law

This article is more than 10 years old

This article is more than 10 years old

Israel is to build 700 homes in East Jerusalem, defying requests from the international community and the Palestinian Authority to halt construction.

Building will take place in three Jewish neighbourhoods in East Jerusalem, all considered illegal settlements under international law, although Israel does not accept this definition.

Israel announced a 10-month partial freeze on settlement activity last month, in response to international pressure, a move which the prime minister, Binyamin Netanyahu, described as a "far-reaching and painful step". However, the freeze does not include East Jerusalem, which was captured by Israel in the 1967 war, along with the West Bank and Gaza.

"From day one, we made a clear distinction between the West Bank and Jerusalem," said Mark Regev, the Israeli government spokesman. "Jerusalem is our capital and will remain as such."

Palestinians view East Jerusalem as the capital of their future state, and the PA has refused to resume negotiations with Israel until it adheres to a complete halt on all settlement activity. "We condemn this in the strongest possible terms," said Saeb Erekat, the chief Palestinian negotiator.

But Regev said: "There has never been a precondition, this is a hardening of the Palestinian position,", adding that a freeze on activity in East Jerusalem is "not going to happen".

In mid-November, Israel announced plans to build 900 homes in the settlement of Gilo, south of Jerusalem.

"We ask Israel, 'if this is your moratorium, what is actual settlement activity?'" said Erekat. "I hope that this will be an eye-opener to America, Britain and others, to the real extent of what is being done on the ground."

A White House spokesman, Robert Gibbs, said the US opposed "new Israeli construction in East Jerusalem. Neither party should engage in efforts or take actions that could unilaterally pre-empt, or appear to pre-empt, negotiations."