Israel approved the construction of a total of 3,226 homes for Jews in the disputed East Jerusalem in March, a report by the Palestine Liberation Organization (PLO) said on Monday.

The biggest projects involved the building of 1,600 housing units in Ramat Shlomo settlement and another 600 homes in a nearby settlement, the report said.

Moreover, Jerusalem municipality has drawn up plans and is waiting an approval to build 50,000 houses in the comings months, according to the report.

Last month, a U.S. drive to resume negotiations between Israel and the Palestinians failed after Israel announced the approval of the 1,600 units in East Jerusalem.

The proximity indirect talks, which the Washington proposed, were intended at handling the issue of the Palestinian state's borders.

The Palestinians want East Jerusalem to be the capital of their future state, while the Israelis view Jerusalem as their indivisible capital.