Middle East Minister Alistair Burt has condemned the expansion of an Israeli settlement in the West Bank.
Authorities in Jerusalem gave final approval to 69 new housing units in Har Homa on Wednesday.
Mr Burt said: "The UK’s position on settlements has long been clear - they are illegal under international law and an obstacle to peace.
“As I set out during my visit to the region earlier this month, both parties need to show bold and decisive leadership to enable US efforts to succeed in bringing the two parties together to direct negotiations without preconditions.