The White House said on Monday that the United States opposes new Israeli construction in East Jerusalem, calling on Israel and the Palestinians to resume negotiation as soon as possible.

"The status of Jerusalem is a permanent status issue that must be resolved by the parties through negotiations and supported by the international community," said White House spokesman Robert Gibbs in a statement.

"Neither party should engage in efforts or take actions that could unilaterally pre-empt, or appear to pre-empt, negotiations. Rather, both parties should return to negotiations without preconditions as soon as possible," he said.

Israel's Construction and Housing Ministry has been seeking bids for construction of about 700 new apartments in East Jerusalem, a ministry spokesman said on Monday, adding that the construction is expected to be completed in two or three years.

Jewish neighborhoods in East Jerusalem, captured by Israel in 1967 and later annexed, are considered by the international community as Israeli settlements and one of the main obstacles to the Israeli-Palestinian peace process.

The status of Jerusalem remains one of the core issues in the Israeli-Palestinian conflict. Israel's annexation of East Jerusalem has not been internationally recognized, and the Palestinians want East Jerusalem to be the capital of a future Palestinian state.

Israeli Prime Minister Benjamin Netanyahu announced a 10-month freeze on construction in the West Bank settlements last month. However, Netanyahu stressed that the construction limits would not be implemented in the predominantly Arab East Jerusalem.

"The United States recognizes that Jerusalem is a deeply important issue for Israelis and Palestinians, and for Jews, Muslims, and Christians. We believe that through good faith negotiations the parties can mutually agree on an outcome that realizes the aspirations of both parties for Jerusalem, and safeguards its status for people around the world," said Gibbs.

The Obama administration has been tired of pushing the Israeli government and the Palestinian National Authority (PNA) to relaunch the long-stalled peace talks.

PNA Chairman Mahmoud Abbas insists that the talks would not be resumed until the Israeli government totally freezes the Jewish settlement construction, while the Israeli side accuses the PNA of setting preconditions for the peace talks.

Some 450,000 Israelis live in more than 100 settlements in the West Bank, including East Jerusalem.