UN political chief Jeffrey Feltman called on Israel on Wednesday "to rescind" its plan to build 1,000 new settler units, which he said was in violation of the international law.
Feltman called on Israel to "abide by its commitment to the international law", while calling on Palestinian protesters to stop incitment of violence.
He urged both sides to commit to "meaningful negotiations."
He was speaking at a UN Security Council emergency session convened at the request of council member Jordan on behalf of the Palestinians.
Tensions have soared between Arabs and Jews over Israel's plans to build about 1,000 settler units in East Jerusalem, al-Quds the part of the city the Palestinians demand for their future state, Al Jazeera reported.
On Monday, Prime Minister Benjamin Netanyahu's cabinet said that it was advancing plans to build about 600 additional settler units in Ramat Shlomo and 400 in Har Homa districts of East Jerusalem.