A spokesman said Thursday the ministry also expects to soon approve the construction of another 2,700 houses in East Jerusalem.
Palestinians want East Jerusalem as the capital of a future state. They have opposed any Israeli construction and refused to resume peace talks unless Israel stops building in the city and in the West Bank.
The Interior Ministry spokesman said the housing plans are not politically based, but rather a reaction to recent protests about the high cost of living and calls for more affordable housing in Israel.
Israel and the United States say the talks are the only way to resolve borders and other core issues of the conflict. They oppose a Palestinian bid to gain U.N. membership for an independent Palestine.
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