The Prime Minister's Office rejected attempts to promote construction of some 2,000 housing units in the Har Homa neighborhood of Jerusalem, Kan News reported.
The Prime Minister's Office responded to the announcement, saying: "Israel has built in Jerusalem, is building in Jerusalem, and will continue to build in Jerusalem - while exercising discretion."
The Jerusalem Municipality has long been trying to promote construction in the Har Homa neighborhood, located in the south of the city, beyond the "Green Line".
However, the Prime Minister is blocking attempts to promote construction for fear of building policy implications in large numbers beyond the "Green Line".
This is not the only Jerusalem construction program stuck for a protracted period under order by senior government officials. There are other significant plans that are not promoted by orders from above, particularly the construction plan in the Givat HaMatos neighborhood.