Nine Jewish settlements that were previously illegal outposts in the West Bank have received authorization from the Israeli government.
The new government of Prime Minister Benjamin Netanyahu is making its first action of this kind.
Israel disputes this, but the international community believes that all settlements are against the law.
For Palestinians, settlements represent a significant barrier to peace with Israel.
They seek the West Bank and East Jerusalem for a future Palestinian state, and they want all outposts and settlements removed from those areas.
Since occupying the West Bank and East Jerusalem in the Middle East war of 1967, Israel has constructed about 140 settlements housing about 600,000 Jews.
The mass construction of new homes within established settlements was also announced by Israeli authorities on Sunday.
According to a statement from Mr. Netanyahu's office, a planning committee would meet soon to approve new settlement homes.
These would number 10,000, according to far-right Finance Minister Bezalel Smotrich's tweet.
The actions have been taken, according to national security minister Itamar Ben Gvir, in response to two recent Palestinian attacks in occupied East Jerusalem that left 10 Israelis dead.
Two brothers, aged six and eight, as well as a 20-year-old man perished in the most recent incident on Friday.
According to the administration of Palestinian President Mahmoud Abbas, Sunday's announcement should be "condemned and rejected.".
Although ambassador Thomas Nides previously stated that Washington would oppose such actions, there has been no immediate response from the US.
"We want to preserve the idea of a two-state solution. Massive settlement growth will not help to achieve that goal, as Netanyahu is aware of, according to Mr. Nides.
And just last month, US Secretary of State Antony Blinken decried West Bank settlement construction as a hindrance to peace.