The Foreign Affairs Minister Charlie Flanagan has condemned Israeli plans to construct more than 1,000 new houses in East Jerusalem.

The Israeli government says it intends to construct 1,060 new housing units, as well as 12 new roads in the West Bank.

Mr Flanagan said "I am gravely concerned at and condemn this latest announcement of new settlement construction."

"It comes at a time of heightened tensions in Jerusalem, following acts of violence last week and increasingly aggressive attempts by the settler community to encroach upon the long-standing arrangements governing the Al Aqsa Mosque in the Old City."

He says the move by Israel "calls into question the commitment of the Israeli government to engage in meaningful negotiations aimed at achieving a two-state solution."

"It is incumbent upon Israel to desist from the policy of expansion of settlements. These are illegal and unacceptable and their planning and construction does little to reduce the conflict."

Mr Flanagan has urged the Israeli government to reverse the decision "and to work with the international community in seeking to revive substantive negotiations aimed at achieving the two-state solution which offers the only realistic prospect for peace between Israeli and Palestinian people."

The Irish government has recently pledged another €2.5m in aid to the Palestinian people, following on from the recent conflict there that left more than 2,000 Palestinians and 70 Israelis dead.