Jerusalem, April 27 (IANS): Israel has announced a tender for the construction of 77 homes in Jewish settlements in east Jerusalem, according to Peace Now, the Israeli NGO that monitors proliferation of settlements, Efe news agency reported.

The organisation revealed that the Israeli ministry of construction and housing invited bids for the construction of the new units on Sunday, the first settlement advancement to be issued by authorities since the elections on March 17.

The tender envisages the building of 41 houses in the settlement of Pisgat Zeev and 36 in Neve Yaacov, both in east Jerusalem, and considered by Israel as districts within its capital, Peace Now explained in a statement.

"Publication of these tenders in east Jerusalem is liable to be an indicator from Netanyahu's transitional government of what can perhaps be expected -- God forbid -- when the new government is formed," the NGO argued.

Israel occupied east Jerusalem along with the West Bank and Gaza in the Six Day War in 1967, and later incorporated the east with the rest of the city, which it considers its "eternal and indivisible" capital.

The international community does not recognise it as such, and Palestinians claim the eastern part of Jerusalem as their own capital.