Occupied Jerusalem - A new round of settlement homes in East Jerusalem are in the works, Israeli media reported on Wednesday, as the US administration awaits a response from Israel on its decision to expand a settlement in the city.

The Israeli Housing Ministry plans to build 1,300 new housing units across the "Pisgat Ze'ev", "Nabi Yakov" and "Har Homa" settlements, which require Israeli Prime Minister Benjamin Netanyahu's approval, in light of the recent crisis in Israeli-US relations, the Hebrew daily Yedioth Ahronot wrote.

The newspaper explained that the latest building proposal is in advanced stages, and has already received support from the regional construction committee - the execution only requires political backing, according to the daily.

In December 2009, Housing Minister Ariel Itas said Israel should build on land outside of the green line, referring to a 54 housing unit expansion in occupied Palestinian territory, to distract the international community from further settlement building in East Jerusalem, a ministry official told the daily.

The official added that the most recent building plans in East Jerusalem are more complex than previous proposals, and therefore required the prime minister's approval.

As a result of discord across occupied East Jerusalem, Knesset Member Abraham Micheal, of Shas party, demanded that the plans, and others for Jerusalem, be withdrawn from the state's committee panel, which were due to be discussed on Wednesday. Micheal said the "time was not suitable," amidst tensions in the city, adding that Israeli Jerusalem Mayor Nir Barkat "asked me to delay discussing the blueprint."

US Secretary of State Hilary Clinton admonished Netanyahu following the announcement of a 1,600 strong housing unit in an orthodox East Jerusalem settlement, as US Vice President Joe Biden visited to kick start peace talks. The Israeli decision was further declared shortly after the PLO officially endorsed US brokered proximity talks with Israel.

The move was described by the prime minister as "hurtful" to US-Israel relations but claimed it was unintentional, and that a committee had been formed to pinpoint how the Interior Ministry was able to announce the build without the government's knowledge. Agencies