United States Vice President Joe Biden has condemned Israel's plans to build 1,600 new settlement homes in east Jerusalem, a move announced as he met Israeli leaders to revive peace efforts.
"I condemn the decision by the government of Israel to advance planning for new housing units in east Jerusalem," Biden said in a statement.
"The substance and timing of the announcement, particularly with the launching of proximity talks, is precisely the kind of step that undermines the trust we need right now and runs counter to the constructive discussions that I've had here in Israel."
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Israel's interior ministry said earlier it approved construction of 1,600 new housing units in Ramat Shlomo, a Jewish settlement in the mainly Arab eastern sector of Jerusalem.
The controversial move infuriated the Palestinians, who consider settlements to be a major hurdle in long-hobbled attempts to reach a peace accord, and who want occupied east Jerusalem as the capital of their promised state.
It came two days after the Palestinians grudgingly agreed to indirect talks after months of US shuttle diplomacy and coincided with the trip by Biden, the highest-level Obama administration official to visit Israel.
"We must build an atmosphere to support negotiations, not complicate them," Biden said in the statement.
"This announcement underscores the need to get negotiations under way that can resolve all the outstanding issues of the conflict.
"The United States recognises that Jerusalem is a deeply important issue for Israelis and Palestinians and for Jews, Muslims and Christians," he said.
"We believe that through good faith negotiations, the parties can mutually agree on an outcome that realises the aspirations of both parties for Jerusalem and safeguards its status for people around the world.
Biden heads on Wednesday to the West Bank city of Ramallah for talks with Abbas and prime minister Salam Fayyad, and he also plans to meet Britain's former premier Tony Blair, the special envoy for the Quartet of key diplomatic players.
