Israel on Thursday issued a detailed plan for the building of some 800 new homes in the neighborhood of Gilo, located outside the 1967 borders of Jerusalem.
A planning committee issued a call for bids from contractors to start building 797 housing units on the western slopes of Gilo.
Hagit Ofran of the Israeli anti-settler group Peace Now, said construction could begin within a few months.
"The government could stop the process before building begins but is taking advantage of the upcoming elections in order to set facts on the ground and will make the possibility of peace with the Palestinians even harder to achieve," she said.
Jerusalem Post Annual Conference. Buy it now, Special offer. Come meet Israel's top leaders