**Israel’s interior ministry has authorised the construction of 900 new housing units at a Jewish settlement to the south of Jerusalem.**The planning and construction committee approved the expansion of Gilo, which is built on land captured in 1967 and annexed to the Jerusalem municipality.
The project still faces review and the public will be able to make objections.
Settlements on occupied territory are considered illegal under international law, though Israel disputes this.
Israeli media reported earlier that the government had rejected a request from Washington to freeze the construction work at Gilo.
US President Barack Obama’s Middle East envoy, George Mitchell, is said to have passed on the proposal to Prime Minister Benjamin Netanyahu at a meeting in London on Monday.
Mr Netanyahu replied that the project did not require government approval and that Gilo was “an integral part of Jerusalem”, according to Israel Army Radio.
There has been no comment from the US or Israeli governments.