Israel approved building permits on Sunday for hundreds of homes in three East Jerusalem settlements, two days after US President Donald Trump took office.

The housing projects, on land that the Palestinians seek as part of a future state, had been taken off the Jerusalem municipality's agenda in December at the last minute at the request of Prime Minister Benjamin Netanyahu, in order to avoid further censure from the administration of Barack Obama.

However Mr Netanyahu, who was scheduled to speak by phone with Mr Trump on Sunday, expects the new US President to row back on the last administration's criticism of such projects.

Israel's right-wing expects Mr Trump's attitude towards settlements built in the West Bank and East Jerusalem, areas Israel captured in a 1967 war, to be far more supportive than that of his predecessor.