Israeli Prime Minister Benjamin Netanyahu will approve the construction of hundreds of new homes in West Bank settlements before considering a freeze on building work. This is in addition to 2500 houses currently under construction.

Mr Netanyahu is defying pressure from Washington for a moratorium on all construction programmes in the Palestinian occupied territories. However, he is also under pressure from his governing coalition - including his own Likud party - not to agree to a construction freeze. He says he would consider a halt "for a few months" once the green light is has been given to the new construction development and provided the Palestinians resume the peace process with Israel.

A spokesman for Palestinian Authority President Mahmoud Abbas said Mr Netanyahu's announcement was absolutely unacceptable and that the "only thing suspended by this announcement will be the peace process".