New Israeli settlements seriously undermine peace, warns EU

Israel's announcements to build thousands of new settler homes in occupied Palestinian territory "further seriously undermine" prospects for a two-state solution, the European Union said on Tuesday.

Israel said it had approved 2,500 news homes in the occupied West Bank days after it gave the go-ahead for 566 new units in east Jerusalem in a major expansion following the election of US President Donald Trump.

The plans, approved by Prime Minister Binyamin Netanyahu and Defence Minister Avigdor Lieberman, marked the largest recent announcement of settlement building by Israel.

The twin announcements "further seriously undermine the prospects for a viable two-state solution," the EU's foreign policy arm said in a statement.

Settlements in both the West Bank and east Jerusalem are viewed as illegal under international law and major stumbling blocks to peace as they are built on land the Palestinians want for their own state.

"It is regrettable that Israel is proceeding with this policy, despite the continuous serious international concern and objections, which have been constantly raised at all levels," the external action service's spokesperson said.

"Continued settlement expansion... goes directly against long-standing EU policy and the recommendations of the quartet Report," it said.

The EU is part of the quartet supporting diplomatic efforts for Palestinian-Israeli peace, along with the United States, the United Nations and Russia.

"A negotiated two-state solution is the only way to fulfil the legitimate aspirations of both parties and to achieve enduring peace," the EU statement said.