The Palestinian Authority (PA) and Israel have agreed to allow construction on the West and East Bank to resume in 2018, despite a series of deadly attacks against Israelis.
The Palestinians will also allow construction in a few areas, such as in the Gaza Strip, that are under Israeli control, the PA said in a statement on Sunday.
It will begin construction in the western Gaza Strip and will be funded by the Israeli government, the statement said.
The Israeli government has already announced a new project that would create a new Jewish town in the northern Gaza Strip.
The new projects are part of a series that will be financed by the Palestinian Authority.
The Palestinian construction committee approved a new 1.5-million-shekel (1.6 million US dollars) project to be financed with money from a $10 billion aid package in 2016.
The Palestinian Authority is currently building a new road in Gaza City and in the southern West Bank, and it is also planning to construct roads and infrastructure in the Palestinian cities of Ramallah, Bethlehem and Bethlehem.
Israel and the Palestinians have been embroiled in a series the last two years in violence that killed more than 1,100 Palestinians and four Israelis.
Israel says the Palestinian attacks are a direct result of its policy of settlements on occupied Palestinian land, and the West bank.
The Palestinians have rejected these claims.
In response to the renewed violence, the Palestinians and the PA signed a deal in December that would allow the establishment of a new settlement in East Jerusalem.
Israel’s foreign ministry condemned the move, calling it “absurd” and a “dangerous step” that “will lead to more violence”.
Israel, which has maintained a blockade on the Gaza strip, has imposed a total blockade on all the Palestinian territories, including the West.
The latest violence was the deadliest in a decade, with more than 300 Palestinians killed and more than 3,000 wounded.
Israeli and Palestinian security forces have fired more than 6,000 rounds of tear gas, rubber-coated steel bullets and stun grenades in the last week alone.
The PA and Israel signed a peace agreement in 2000 but it has been subject to international scrutiny due to repeated violations of its obligations under the Oslo Accords.