Israel has extended subsidizing several illegal settlements in the occupied territories, in a move which is expected to paralyze the newly revived talks between the Israeli regime and Palestinian Authority.

On Sunday, Israel added 20 settlements in the West Bank to the 2009 list, prioritized to receive aid in housing, infrastructure, and security spending.

Palestinian official Hanan Ashrawi said the move would have a " destructive impact " on peace talks, which resumed last week after a three - year hiatus.

" This is exactly what Israel wants, have a process for its own sake, and at the same time have a free hand to destroy the objective of the process, " she said in quotes carried by the Associated Press.

" It seems to me it ' s up to the sponsors, the United States and the international community, to make Israel desist immediately. " The issue of settlement - building halted the last direct talks between the Israelis and Palestinians in September 2010.

Israel tried to cover its uncooperative stances in the talks by announcing to release a number of Palestinians which are illegally serving long - time jails in its prisons, many of them held without any trials.

The issue of settlement - building halted the last direct talks between the Israelis and Palestinians in September 2010, and Palestinians are not optimistic that this time Israel would make any difference.

Two in three(66%) Palestinian adults interviewed by Gallup think - tank in June said they do not trust the US as a peace broker and 70% said they do not believe a peace agreement will be achieved.

Settlements are considered illegal under international law, but Israel has remained indifferent about international calls to stop its activities.

On Sunday, the Israeli cabinet published a list of more than 600 towns and settlements to be regarded as priority areas for development.

More than half a million Israelis live in over 120 illegal settlements built since Israel’s occupation of the Palestinian territories of the West Bank and East al - Quds in 1967.