The interior ministry confirmed the new construction, amid reports that Mr Netanyahu had turned down a direct request from Washington's envoy, George Mitchell, to halt the programme.
The Israelis claim that the settlement, Gilo, is now part of Jerusalem, which it has always said would not be included in any freeze that might be agreed to facilitate talks.
Gilo already houses 40,000 Israelis.
Israel approves 900 more settler homes
The Kremlin said on Wednesday it continues to monitor statements by US president Donald Trump regarding...
Arab and Muslim countries, including Saudi Arabia, Qatar, Egypt, Jordan and Turkey, signed a declaration Tuesday...
