Nabil Shaath
Nabil ShaathReuters

The Palestinian Authority (PA) blasted Prime Minister Binyamin Netanyahu on Tuesday, after he pledged to build thousands of new homes in Maaleh Adumim, a city of roughly 40,000 east of Jerusalem, and annex it to Israel.

Speaking at a Likud faction meeting in Maaleh Adumim, Netanyahu said, "We shall build here thousands of housing units" and add industrial zones.

"This place will be a part of the state of Israel," he stressed.

Nabil Shaath, a senior adviser to PA chairman Mahmoud Abbas, later called Netanyahu's comments "totally unacceptable."

"This is an attempt by Netanyahu to destroy the two-state solution and a clear refusal of any attempt to revive the peace process, especially by the United States," he said, according to The Associated Press.

The Likud party earlier this year postponed a vote on a bill authored by the Jewish Home party to apply Israeli sovereignty over Maaleh Adumim.

The postponement came even though Netanyahu pledged his backing for the proposal. It was believed he postponed the vote due to his desire to formulate policies with the Trump administration regarding Judea and Samaria.

Netanyahu’s announcement on Tuesday came amid continued efforts by Trump to renew the stalled peace talks with the PA.

Trump recently said he believes there is a "chance" for a Middle East peace settlement.

PA officials have expressed pessimism that Washington's peace efforts can bear fruit, mainly due to the Trump administration’s reluctance to commit to a “two-state solution”.

The State Department recently explained that committing to a two-state solution beforehand would “bias” the outcome of a peace agreement.