The Israeli Jerusalem Municipality on Wednesday approved the construction of 3,000 new housing units in East Jerusalem.
The Israeli Public Broadcasting Corporation Kan said the new housing units will be built in the area between the Gilo settlement and the Tunnels Road which connects the city of Jerusalem to the illegal Gush Etzion settlement bloc and Hebron to the south.
"Today is a historic day for the city of Jerusalem, which lacks land, and we have approved thousands of settlement units in Gilo," Kan quoted Jerusalem deputy mayor as saying.
"This means more young couples in the city, in order to continue the development of Jerusalem, and give it the largest push in recent years," he added.
Israeli media reported in December 2017 that the Israeli authorities approved a plan to build 300,000 settlement units in the "Greater Jerusalem" area, mainly in East Jerusalem.
The channel said the plan also includes infrastructure including roads, commercial areas and others.
On 6 December US President Donald Trump announced his country's official recognition of Jerusalem as the capital of Israel.
The international community sees settlements as a major obstacle to peace and has repeatedly stressed that they reduce the chances of a viable Palestinian state.