The United Nations has voiced disappointment with Israel's illegal settlement construction in the occupied Palestinian territories despite international opposition.

"It is deeply regrettable that growing international concern at unilateral expansion of illegal Israeli settlements is not being heeded," UN spokesman Martin Nesirky said on Monday, AFP reported.

Condemning Israel's Sunday destruction of a hotel in the occupied East al-Quds (Jerusalem), he said, “Such actions seriously prejudice the possibility of a negotiated solution to the Israeli-Palestinian conflict.”

The move also occasioned damning statements by the Palestinian Authority and the European Union.

Israeli bulldozers razed the Shepherd Hotel in the predominantly-Palestinian neighborhood of Sheikh Jarrah in East al-Quds to build 20 new settlement units.

Alongside other Palestinian and Arab territories, Tel Aviv occupied East al-Quds during the Six-Day War in 1967.

The occupation and later annexation of the city -- which the Palestinians have long been demanding as the capital of their future state -- has never been recognized by the international community.

“The secretary general once again calls on...Israel to take whatever steps are necessary to freeze settlement activity anywhere in occupied territory,” the official said on behalf of UN chief Ban Ki-moon.

Israel refused to prolong the 10-month ban in late September, stalling US-sponsored direct talks with the Palestinian Authority which had started earlier that month in Washington earlier in the month.

The Palestinians say that the settlement activities are being carried out to prevent the establishment of an independent Palestinian state.

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