Jerusalem city hall has approved the construction of 14 apartments for Israelis in an Arab neighborhood in disputed east Jerusalem.

Palestinians deplore any expansion of the Israeli presence in the city's war-won eastern sector because they hope to establish their future capital there.

The municipality said in a statement Wednesday that the plan met all the necessary conditions for approval.

The housing is to be built at the site of a former Israeli police station.

The station was vacated several years ago after the headquarters relocated to another disputed site, just outside Jerusalem in the West Bank.