Israel announced plans to build nearly 1,900 new settler homes in the West Bank and east Jerusalem.

The housing ministry announced the plans for 1,076 units in annexed east Jerusalem and 801 in the occupied West Bank, said Peace Now spokesman Lior Amihai.

"Many of the units will be built in existing settlements such as Efrat and Ariel in the West Bank and Ramat Shlomo, Ramot and Pisgat Zeev in east Jerusalem," he said.

The announcement had been expected, but Israel delayed publication until the departure of US Secretary of State John Kerry.

Israel is not obligated to halt construction under the peace talks but Mr Kerry had warned that illegal construction raised questions about Israel's commitment to peace.

Palestinian spokesman Nabil Abu Rdeneh condemned the announcement, saying it undermined "American efforts aimed at creating a peace track toward a two-state solution."

Since the peace talks resumed, Israel has issued 5,500 tenders for new housing in the West Bank and east Jerusalem, said Israeli anti-settlement group Peace Now spokesman Yariv Oppenheimer.

It was a significant increase on the average of between 2,000 and 3,000 in previous years.

Elsewhere, extremist settlers cut down fruit trees belonging to Israeli Arabs overnight in a revenge attack.

The vandals left placards in an orchard near Kfar Qasim reading: "Regards from Esh Kodesh," the West Bank settlement whose residents were detained and handed over to police on Tuesday when they raided Palestinian village Qusra.

Seven of the dozen settlers involved in the original incident were remanded in custody on Thursday night.

On Wednesday, Peace Now wrote to mininsters demanding they dismantle Esh Kodesh because residents "repeatedly attacked" Palestinians.

"Esh Kodesh is an outpost that serves as launching ground for severe unlawful activity," said the letter.

The watchdog slammed the government not carrying out demolition orders against wildcat outposts.

Israel's army later announced it was also investigating a separate incident in which troops stood by while settlers stoned Palestinians in another village.

It was filmed by Israeli human rights watchdog B'Tselem.