Jerusalem: Israel has advanced the planning of more than 1000 new Jewish settler homes in annexed east Jerusalem, sparking a Palestinian warning of an "explosion" of violence.

"The government has decided to advance the planning of more than 1000 units in Jerusalem - roughly 400 in Har Homa and about 600 in Ramat Shlomo," an official in Prime Minister Benjamin Netanyahu's office said, referring to two existing east Jerusalem settlements.

Under construction: A Palestinian works on a new housing project in the annexed Arab east Jerusalem neighbourhood of Jabal Abu Ghneim, where Israel is planning to build hundreds more settler homes. Credit:AFP

He did not elaborate and declined to comment on the likely political and diplomatic impact of such a move at a time when Palestinians and the international community are already incensed at latest settler moves in the east Jerusalem neighbourhood of Silwan, where there have been almost nightly clashes for months.

Jibril Rajoub, a senior member of Palestinian President Mahmoud Abbas' Fatah movement, warned of violent consequences likely to follow the latest settlement plans.