Israel has approved the building of 1,600 new homes in east Jerusalem, in a move that threatens to overshadow US Vice-President Joe Biden's visit.
The move will infuriate Palestinians, whose leaders have only recently agreed to resume contacts with Israel - at Mr Biden's urging.
The international community considers East Jerusalem, annexed by Israel in 1967, to be occupied territory.
Building on occupied land is illegal under international law.
Under US pressure, Israel has announced a 10-month suspension of new building in the West Bank. But the suspension excludes East Jerusalem, where the Palestinians want their capital.
Hopes for talks
Mr Biden is the most senior member of President Barack Obama's administration to visit Jerusalem.
Earlier, at a joint news conference with Israeli Prime Minister Benjamin Netanyahu, he said there was a "moment of real opportunity" for peace between the Palestinians and Israel.
Mr Biden welcomed the two sides' recent agreement to start indirect "proximity" talks, saying the US would back those who "took risks for peace".
Mr Biden said he hoped the indirect talks would lead to direct talks, through which a two-state solution with "Israel and Palestine side-by-side" could be reached.
The Palestinians refuse to hold face-to-face negotiations with the Israelis unless they halt all settlement building in the occupied West Bank, where the Palestinians want their future state.
US Middle East envoy George Mitchell is expected shuttle between the Palestinians in Ramallah and the Israelis in Jerusalem.
Hours before Mr Biden's arrival on Monday, Israel enraged Palestinians by approving 112 new homes in Beitar Illit in the West Bank.
http://news.bbc.co.uk/go/pr/fr/-/2/hi/middle_east/8558347.stm
Published: 2010/03/09 16:37:11 GMT
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