Israel has given final approval for 90 new settler homes in the occupied West Bank, driving another wedge into a rift with Washington ahead of a visit by US President Barack Obama.
"The Palestinian position is clear. There can be no negotiation while settlement continues," Nabil Abu Rdainah, a spokesman for Palestinian President Mahmoud Abbas, said in response to the new Beit El construction.
International law and most of the international community consider Israel's settlements illegal.
Israel disputes this, citing historical and Biblical links to the land.
Victoria Nuland, the US State Department spokeswoman, said she had not seen the announcement but repeated the Obama administration's opposition to such settlement expansion.
"Our position on this has not changed. We don't think it's helpful," Nuland told reporters at her daily briefing.
There are now more than 325,000 settlers living in the West Bank, with a further 200,000 living in East Jerusalem, which was also occupied by Israel after 1967.
It is claimed by the Palestinians as their capital city.
PHOTO CAPTION
An Israeli soldier looks out from a guard post in the West Bank Jewish settlement of Beit El, near Ramallah February 1, 2013.
Aljazeera