Israeli barrier separates eastern Jerusalem (below) with the Palestinian West Bank village of Abu Dis on June 03, 2021. (Photo: AFP)

The statements came after the Jerusalem District Planning Committee convened on Monday to advance the plan onto the final stages of approval before construction can begin in the coming months.

US State Department spokesperson Matt Miller said that the expansion of settlements undermines the geographic viability of a two-state solution, exacerbates tensions, and further harms trust between the two parties.

A spokesperson for the EU said in a separate statement that its long-stated position on settlements, including construction in Israeli-annexed East Jerusalem, is that it is illegal according to international law and a major obstacle to achieving a two-state solution.

The EU has consistently made it clear that it will not recognize any changes to the pre-1967 lines, including in Jerusalem, other than those agreed upon by the parties, the spokesperson added.