Egypt's Foreign Ministry condemned Wednesday Israel's decision to build 1,600 new settlement units in East Jerusalem, saying it is "a real peril to peace efforts," the official MENA news agency reported.

"Israel's decision to build 1,600 settlement units in the holy city of East Jerusalem is a real peril to peace efforts which have not started seriously yet," a Foreign Ministry spokesman said.

Egyptian Foreign Minister Ahmed Abul Gheit has ordered making contacts with U.S. officials to brief them on Egypt's rejection of such Israeli moves and calls for freezing them indefinitely if the Israeli government is serious in realizing peace, the spokesman added.

The Israeli Interior Ministry approved on Tuesday building 1, 600 new settler homes in East Jerusalem, just one day after U.S. special envoy to the Middle East George Mitchell announced that the Israeli and Palestinian sides had agreed to hold indirect talks.

The Israel's decision was also condemned by U.S. Vice President Joe Biden, who is on a high-profile visit to the region to boost renewed peace efforts.