RAMALLAH, March 10 (Xinhua) -- Visiting U.S. Vice President Joe Biden Wednesday condemned the recent Israeli decision to build more new settlements in East Jerusalem, which inflamed the Palestinians' concerns that it will undermine the proximity talks proposed by the United States.

On Tuesday, the Israeli-right wing government headed by Prime Minister Benjamin Netanyahu announced that it had given the greenlight to a project to construct 1,600 new homes in a Jewish neighborhood in East Jerusalem.

Two days earlier, another plan was approved to build 112 new housing units in a settlement in the West Bank.

U.S. Vice President Joe Biden (L) attends a joint press conference with Palestinian President Mahmoud Abbas after their meeting in the West Bank city of Ramallah, on March 10, 2010.

"The decisions undermine that very trust we must right now begin," Biden told a joint news conference with Palestinian President Mahmoud Abbas, stressing that "the U.S. is committed with its efforts to establishing a stable and viable Palestinian state."

The Israeli decision was made a few days after an Arab League ( AL) committee and then the Palestine Liberation Organization (PLO) executive committee approved a U.S. offer to begin indirect proximity talks between Israel and the Palestinians which ended a 15-month hiatus since Israel launched a devastating military campaign against the Gaza Strip in late 2008.

"There is no alternative for achieving the principle of the two- state solution," said Biden at the news conference.

Biden said Washington "will hold both sides accountable for any statements or actions that will inflame tensions or prejudice the outcome of talks," noting that the building of the new settlements did inflame the situation, and both sides "should build an atmosphere to support these negotiations."