Washington, Oct 28 - The US is deeply concerned by reports that Israel would build more settler homes in east Jerusalem, the state department has said.

US concerned over Israeli decision on new homes

Israel's leaders have said they would support a pathway to a two-state solution, but moving forward with this type of action would be incompatible with the pursuit of peace, state department spokeswoman Jen Psaki said in a regular briefing Monday.

Israeli Prime Minister Benjamin Netanyahu has decided to advance plans for 1,060 housing units in Jewish neighbourhoods in east Jerusalem, a source in the prime minister's Office confirmed to Xinhua Monday.

Psaki said US embassy officials were engaging with the Israeli government on the issue.

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