The Israeli Government has approved the release of 26 veteran Palestinian prisoners, ahead of renewed peace talks between the sides later this week.

A statement from the Israeli Prime Minister Benjamin Netanyahu says a ministerial committee to free prisoners during negotiations has approved the release.

Earlier, Israel announced it has plans to issue tenders for more than 1 thousand new settlements on an area that's criticised as occupied Palestinian land.

The apartments would be in the West Bank and East Jerusalem.

It comes just three days before talks between Israeli's and Palestinians sponsored by the US.

It had prompted Palestinians to claim the move proved that Israel was 'not serious' about the peace talks.