Jerusalem ( CNN ) -- Israel approved construction permits for more than 550 settlement units in East Jerusalem , officials said , escalating tensions with Palestinians amid negotiations . The city council committee Wednesday evening approved issuing the construction permits , which is considered the last stage before building of settlements can start . `` The local planning and building committee had dealt with request of private enterprises to approve building permits for 386 units in Har Homa , 136 units in Neve Yakov and 36 units in Pisgat Zeev for plans approved years ago , '' the Jerusalem municipality said in a statement . The areas are considered disputed , with settlements illegal under international law . A member of the municipality council rejected the plans . `` I oppose to this annexation for new buildings , what Israel and the municipality are doing is constructing unilaterally without consultation with anyone , '' said Pepe Alola , who also serves as chairman of Meretz party . An Israeli settlement watch group described it as another blow to peace efforts . `` It 's a shameful decision for a government that seeks a solution for a two-state solution would choose to issue so many permits for settlements units in East Jerusalem and the West Bank . This is not the first time ... just another development of making a solution for Jerusalem much more difficult , '' said Lior Amihai , deputy director of Peace Now . Palestinian officials said it will sabotage ongoing talks between the two sides . `` Israeli Prime Minister Benjamin Netanyahu is deliberately sending a strong message to the United States , Europe and the rest of the world that he has no intention of adhering to international law and the will of the international community , '' said Hanan Ashrawi , a member of the Palestinian Executive Committee . In July , U. S. Secretary of State John Kerry engaged Israelis and Palestinians to start a nine-month negotiation process that will lead to a framework on future agreements . As the April deadline nears , efforts have not yielded any agreement . Israel seized Jerusalem in 1967 and later annexed the city unilaterally , a move the international community does not recognize . Palestinians want East Jerusalem to be part of their future state in any final status negotiations . Israel considers Jerusalem its `` eternal and undivided `` capital .
Under international law , new settlements in the disputed area are illegal . Palestinians want East Jerusalem to be part of their future state . Israel wants it as its capital and rejects any move by Palestinian leaders towards a negotiated solution with the Palestinians.