UN Secretary-General Ban Ki-moon criticized Israel over reports that it plans to build 2,600 more housing units in East Jerusalem, saying further settlement activity was "unacceptable."

"The Secretary-General is deeply concerned over continued efforts to advance planning for new Israeli settlements in occupied East Jerusalem," Ban's press office said in a statement.

"Recent developments in this regard have been unacceptable, particularly as efforts are ongoing to resume (Israeli-Palestinian) negotiations, and run contrary to the Quartet's call on the parties to refrain from provocations," it said.

The Peace Now anti-settlement group said that Israel planned to build the housing units in a new urban settlement in East Jerusalem, angering Palestinians who want a halt to all such projects before they return to peace talks, Haaretz reported.