The European Union on Fridaycondemned an Israeli plan to build 2,610 new settler homes in annexed east al-Quds (Jerusalem), calling it "highly detrimental" to diplomatic efforts for Israeli-Palestinian "peace".

Brussels called on Israel to "urgently reverse" actions leading to settlement expansion in east al-Quds.

"This represents a further highly detrimental step that undermines prospects for a two-state solution and calls into question Israel's commitment to a peaceful negotiated settlement with the Palestinians," the EU's diplomatic service said.

The housing units, which have been slated for construction since 2012 in the neighborhood of “Givat Hamatos,” were given final approval last week, according to the Peace Now watchdog.

The project has also drawn sharp criticism from the United States, with President Barack Obama on Wednesday telling Israeli Prime Minister Benjamin Netanyahu of Washington's deep concern over the proposed development, and from France.

The EU also accused Israel of allowing further settlement expansion in the east al-Quds neighborhood of Silwan.

Source: AFP