The Israeli authorities have approved plans to build 20,000 new settlement units throughout Greater Jerusalem, Israeli media reported Wednesday.
According to the Israeli Broadcasting Authority, most of the planned homes will be built in areas occupied by Israel since the 1967 Middle East War.
The project, the broadcaster said, is expected to cost some 1.4 billion Israeli shekels (roughly $379 million).
Jerusalem remains at the heart of the Middle East conflict, with Palestinians hoping that occupied East Jerusalem might eventually serve as the capital of an independent Palestinian state.
International law views the West Bank and East Jerusalem as "occupied territories" and considers all Jewish settlement construction there as illegal.