Israel has authorised the construction of 3,000 more housing units in East Jerusalem and the West Bank, according to Israeli officials.
It is also speeding up the processing of 1,000 extra planning permissions.
The Palestinian Authority has said it will not return to peace talks without a freeze in settlement building.
The decision comes a day after a vote at the UN General Assembly upgraded the Palestinians' status at the UN to that of non-member observer state.
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