According to the Israeli regime sources, most of the planned homes will be built in areas occupied by Israel since the 1967 Middle East War.
The project, the sources said, is expected to cost some 1.4 billion Israeli shekels (roughly $379 million).
Jerusalem Mayor Nir Barkat described the move as “historical and important to the future of Jerusalem.”
International law views the West Bank and East Jerusalem as "occupied territories" and considers all Jewish settlement construction there as illegal.