U.S. Secretary of State Hillary Clinton said on Friday that Israel's new settlement plan was "a deeply negative signal" for the bilateral relationship.

In a phone call with Israelian Prime Minister Benjamin Netanyahu, Clinton said Israel's new settlement plan was a "deeply negative signal about Israel's approach to the bilateral relationship", State Department spokesman Philip Crowley said at a news briefing.

Israeli government Tuesday decided to build 1,600 new housing units in Jewish settlements in East Jerusalem. Palestinian President Mahmoud Abbas will not accept resuming any talks with Israel before the latter stopping settlement construction in East Jerusalem, a senior Palestinian official said Friday.