Egypt on Saturday condemned Israeli plans to build new housing units in East Jerusalem, describing the decision as "provocative", Xinhua reported.
"It seems that the Israeli side retreats day after day from fulfilling its commitments and promises within efforts to achieve peace," Egyptian Foreign Ministry spokesman Hossam Zaki said in a statement.
Israeli media reported Friday that Prime Minister Benjamin Netanyahu approved tenders for building 238 new Jewish housing units in East Jerusalem.
The move is a threat that might lead to the collapse of negotiations between the two sides and it is a negative Israeli response to all efforts and contacts made to save the negotiation process, Zaki said.
He said Egypt holds the Israeli government fully responsible for the current situation, calling on the United States to face what he described as the Israeli "flightiness" that leaves no room or credibility for the voices of moderation and "directly feeds the circles of extremism and confrontation."