Israel's hawkish Prime Minister Benjamin Netanyahu will soon approve the construction of hundreds of new housing units in West Bank before he declares a moratorium, in an apparent snub to Washington's call for total settlement freeze to push forward the fragile peace talks with Palestinians.
Aides in the Prime Minister's office were quoted by local media that Netanyahu has informed US officials of his decision to authorise the construction of houses a few weeks ago.
The immediate future of construction in West Bank settlements will be reportedly determined in talks between Israeli officials and US Middle East envoy, George Mitchell, who will visit Israel next week.
"The issue could be decided in Mitchell's two-day visit, which will begin on Thursday", the PMO source was quoted as saying.
However US officials in Israel denied knowledge of any such approval by the US administration.
A spokesman for the US embassy in Tel Aviv, Kurt Hoyer, told Ynetnews that it is unlikely that Washington would accept anything "contrary to the spirit of negotiations they've been undertaking" and added it was "doubtful" the US had signed off on the Israeli decision.
The hundreds of units whose construction the Israeli premier, heading an overwhelmingly right-wing coalition, is expected to approve will join some 2,500 housing units currently being built there.
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