Palestine Liberation Organization (PLO) on Wednesday slammed Israel for approving the building of new homes in a Jerusalem settlement.

"Israel, the occupying power, steals the occupied Palestinian land to build illegal settlements by force and violence," the PLO said in a statement sent to the media. "Israel undermines all international efforts to make fair peace in the region."

The right-wing Israeli government, led by hawkish Benjamin Netanyahu, approved the building of 900 housing units at Gilo settlement in southern Jerusalem. Israel considers the area as part of its territories while the Palestinians say it is an occupied land.

"This is an infamous violation of the agreements with Israel and the international legitimacy's resolutions, the settlement on occupied Palestinian lands, including East Jerusalem, is illegal," the PLO added.

The continuation of the Jewish settlement has caused peace talks between the two sides to come to an end in December last year.

Saeb Erekat, a senior Palestinian negotiator, said that the talks were aimed at creating a Palestinian statehood alongside Israel "but Israel builds settlements on the same land that would be the ground of Palestinian state."

"Israel should choice between peace or settlements," Erekat told reporters.

(Xinhua News Agency November 18, 2009)