Jerusalem, Oct 27 (IANS): Israel Prime Minister Benjamin Netanyahu has decided to plan for 1,060 housing units in Jerusalem, an official said Monday.

The plans include 660 housing units in Ramat Shlomo and 400 in Har Homa, Jewish neighbourhoods located in Jerusalem, the official told Xinhua.

In addition to the approval of the new housing units, Netanyahu also ordered the advancement of infrastructure projects in West Bank settlements, including 12 new roads.

On Tuesday, the Jerusalem municipality's planning and construction committee will discuss a plan to build 1,530 housing units in Ramat Shlomo, which was authorised in November 2013 but then suspended over the US' objection.

Earlier this month, the US criticised Israel for building 2,610 houses in Jerusalem's Givat Hamatos area, saying the construction plans would "poison the atmosphere" and pull Israel away "from even its closest allies".

The Labour party has released a statement slamming the move, saying Netanyahu cares more about his political future and securing the support of the extreme right than he does about Israel's diplomatic standing in the world and its prospects for peace.

Finance Minister Yair Lapid and Justice Minister Tzipi Livni have also criticised the construction plans.

Livni called the move "irresponsible" and Lapid said the plan would severely damage the already strained relationship between the US and Israel.