The rightist Israeli Channel 7 television reported that the new units would be built on land in the East Jerusalem town of Beit Safafa.

The Israeli owner reportedly approached the committee and requested to build three 11-story apartment buildings instead of a hotel, as was initially planned.

According to the report, the committee had canceled a meeting earlier this month where it was to have approved the units so as not to coincide with meetings between Israeli Prime Minister Benjamin Netanyahu and US officials in Washington.

The Palestinian Authority slammed the new Israeli project, saying it “undermines the efforts of continuing the peace process.”

Nabil Abu Rudeina, spokesman for Palestinian President Mahmoud Abbas, said that “the settlement expansion policy destructs US and international efforts to achieve progress in the peace process.”

He added: “Any new Israeli project in the occupied Palestinian territories in 1967 is illegal and will disappear sooner or later.”

Meanwhile, Yasser Abd Rabbo, secretary-general of the Palestine Liberation Organization (PLO’s) Executive Committee, said the longer Israel and Washington hold talks on resuming the Middle East peace talks, the less hope the peace process has.

Abd Rabbo told Voice of Palestine radio that Israel wants “to gain more time to create facts on the ground” during its talks with the US administration, referring to the settlement building. Abd Rabbo accused Israel of trying to get “a high price from Washington” in exchange for the building freeze “and this means that the peace process is no longer able to revive.”

On Saturday, the Israeli media reported talks with the US administration collapsed.

In another development, Israeli authorities on Monday handed notifications to Palestinians near the West Bank city of Bethlehem, warning two homes and a mosque would be demolished next month since they did not have the necessary building permits.

Hassan Breihiyeh, coordinator of the National Committee Against the Wall and Settlements in the southern West Bank, said Israeli soldiers handed the warrants to Mahmoud Ahmed Zawahreh and Awad Hassan Zawahreh.

Breihiyeh added that Israeli forces also warned the village’s council that the Ibrahim Al-Khalil mosque would be demolished on Dec. 23 under the pretext that it was built in Area C without the needed license from authorities.

On Thursday, Israeli authorities demolished a mosque in the West Bank village of Khirbet Yarza, in Jordan valley.