Israeli Prime Minister Benjamin Netanyahu attends a cabinet meeting in Jerusalem March 16, 2017. [Photo/Agencies]

The White House pointedly avoided any specific condemnation of the announcement, although it said that further settlement activity "does not help advance peace" and that it expects Israel to show restraint moving forward. Still, the relatively tepid response was a far cry from the automatic condemnations voiced by the Obama's administration in reaction to Israeli settlement announcements. The White House statement even went so far as to "welcome" what appears to be a limited Israeli commitment to take Trump's concerns about settlements into "consideration," without any guarantees to avoid similar announcements.

Prime Minister Benjamin Netanyahu's office announced the decision late Thursday following a meeting of his policy making Security Cabinet.

Netanyahu has vowed to build a new settlement to compensate the residents of Amona, an illegal settler outpost that was demolished in February under the orders of Israel's Supreme Court. Thursday's announcement said the new settlement would be built near the existing settlement of Shilo, which is nearby to the Amona site. It also said the government had approved tenders to build 2,000 new apartments from previously approved settlement projects.

The Palestinians claim the West Bank and east Jerusalem, areas captured by Israel in 1967, as parts of a future state. In December, weeks before Trump was inaugurated, President Barack Obama allowed the UN Security Council to pass a resolution that declared all settlements in both areas to be illegal. Trump condemned the decision at the time.

On the campaign trail, Trump indicated he would be far more sympathetic to settlements than Obama and the international community, which consider Israeli construction on occupied land to be illegal. His platform made no mention of an independent Palestinian state, and his inner circle includes strong supporters of the settlement movement.

But since taking office, Trump has appeared to change his position, telling an Israeli newspaper last month that settlements "may not be helpful" and telling Netanyahu at the White House that he would like to see some restraint. Since then, Israel and the US have been in talks over what kind of construction the White House would tolerate.

A White House official sought to play down Thursday's Israeli announcement, saying Netanyahu made his promise to the Amona settlers before Trump laid out his vision. But the official, who agreed to discuss the matter on condition of anonymity because he was not authorized to speak publicly about it, signaled that the White House would take a tougher line down the road.