The Lebanese Shiite movement Hezbollah on Friday criticized Israel's plans of building 1,600 housing units in East Jerusalem.
"Such a step is very dangerous and aims to change the demographics of the city," Hezbollah said in a statement, which also accused the United States of backing the Israeli decision, dpa reported.
The announcement for the new construction came while Vice President Joe Biden was in Israel and as Washington had brokered indirect talks between the Israelis and Palestinians.
Biden issued a statement hours after the announcement while still in Israel on Tuesday, harshly condemning the building plans.
"Israeli actions aim to eliminate the Palestinian cause," Hezbollah said, calling on all Arab and Islamic nations to respond as soon as possible to the issue.