A Palestinian official on Tuesday slammed Israel's new settlement projects in East Jerusalem, considering them a blow to peace.

"We condemn the continuation of Israeli measures that are against all the requirements of the peace process," said Saeb Erekat, chief Palestinian negotiator. "We shoulder Israel the full responsibility for the failure and setback of the peace process," he told Xinhua.

His remarks came after Israel has reportedly approved the building of a hotel residence of 1,100 rooms in the south of East Jerusalem, which the Palestinians want as a capital for a future state.

Erekat said the approval was "a negative response" to a letter that Palestinian President Mahmoud Abbas sent to Israeli Prime Minister Benjamin Netanyahu two weeks ago.

The letter includes the Palestinian conditions to resume stalled peace negotiations, with the suspension of all settlement activities on the top of the provisions.

In 2010, the U.S.-sponsored peace talks stopped after the Palestinians withdrew in protest against the resumption of Jewish settlement construction in the West Bank.