In the occupied West Bank, the Israeli government has advanced plans for about 5,700 new homes.
Despite US pressure to halt settlement growth, which it views as a barrier to peace with the Palestinians, the announcement has nonetheless been made.
A US spokesperson described the development as "deeply troubling" for Washington.
Last week, Palestinians shot and killed four Israeli settlers, sparking days of settler violence.
Since Israel's Prime Minister Benjamin Netanyahu was re-elected last year, violence between Palestinians and Israelis has increased.
His nationalist-religious alliance has promised to increase its influence in the Palestinian territories.
The West Bank has seen the advancement of more than 13,000 settlement homes in the last six months, according to the Israeli anti-settlement organization Peace Now. This is roughly three times as many as there were in the entire previous year.
The organization claimed in a statement that "the Israeli government is pushing us toward the full annexation of the West Bank at an unprecedented pace.".
Although Israel disagrees, most nations consider the settlements to be against international law because they were constructed on territory that was taken by Israel during the Middle East War in 1967.
A spokesperson for US national security criticized the settlements' growth, saying it "undermines the geographic viability of a two-state solution, exacerbates tensions, and further harms trust between the two parties.".
Following last week's fatal shooting of settlers by Palestinian gunmen in the settlement of Eli, the government announced new plans that include an additional 1,000 homes there.
The gunmen, according to the Palestinian militant group Hamas, were its members.
Following that assault, settlers went on the rampage in Palestinian villages; homes were set on fire, and one Palestinian was killed.
Over the weekend, the leaders of Israel's armed forces, police, and Shin Bet security service issued an unusual joint statement denouncing the vigilantism.
The far-right members of Israel's ruling coalition reacted angrily to their action.
