The Interior Ministry District Committee approved construction of 1,500 housing units in the Ramat Shlomo neighborhood in north Jerusalem, beyond the Green Line, Israel Radio reported.
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The project already became a major source of international controversy as part of the "Biden Fiasco," when the project was approved for deposit during the US vice president's visit to Israel in March 2010.
Following the incident, the Prime Minister's Office instituted "increased mechanisms" to ensure they are involved and updated about all east Jerusalem building projects.
Israel approved the construction of 3,000 new housing units in Jerusalem and in the West Bank last month in response to the UN approving the Palestinian bid for non-member observer state status, government officials stated.