The Tánaiste and Foreign Affairs Minister is strongly criticising a decision by Israel to construct 3,000 new settlement units in East Jerusalem and West Bank.

Reports of the decision first emerged on Friday.

Eamon Gilmore is expressing concern at the development saying it shows Israel has no real intention of desisting from expanding and building new settlements which are illegal under international law.

Official sources say it is in retaliation at the Palestinians winning the rank of a United Nations non-member state last week.

"This latest announcement conflicts very much with the stated commitment of Prime Minister Netanyahu and his Government to making progress through peace talks and achieving a 2-state solution" Mr. Gilmore said.

"Last week’s decision by the UN General Assembly to grant Observer State status to Palestine should have provided much needed impetus for the resumption of substantive peace negotiations".

"It should not be used as grounds for creating further serious obstacles in the path of peace. It is only through direct talks that a just and honourable peace agreement, based on the two-state solution, can be achieved".

"I appeal to both sides to desist from any activity which detracts from this vital objective or makes the resumption of peace talks more difficult" he added.

The Tanaiste last week welcomed the adoption of the resolution by the UN General Assembly saying it was "an important step for the Palestinian people on their path towards full statehood".

International reaction

Meanwhile Britain has summoned its Israeli ambassador to London to condemn the plans.

The development which has caused most concern is in East Jerusalem in an area known as E-1 which would effectively cut the West Bank in two.

The UN Secretary-General Ban Ki-Moon says the plans would deal an "almost fatal blow" to peace prospects.