But officials said Olmert made clear to the Palestinians that building in Har Homa that has already been authorized can go forward. Israel considers Har Homa to be part of Jerusalem, as opposed to the West Bank.
The Palestinians say that the road map's explicit call for a halt to all settlement activity means all Israeli building on occupied land, including within Har Homa, is prohibited.
Israel interprets its road map commitments differently, arguing that construction within built-up areas is permissible as long as no new enclaves are built and no additional occupied lands are confiscated.
"This is a policy directive by the prime minister to relevant government agencies designed to ensure that the machinery of government is ready to implement Israeli obligations under the road map," Regev said.
In addition to Har Homa, Israel's Housing Ministry has announced plans for new building within Maale Adumim.
