JERUSALEM — In the wake of the release of 26 Palestinian terrorist prisoners, Israel on Tuesday approved the construction of 1,500 housing units in Jerusalem, Judea and Samaria, and green-lighted the planning of 2,000 additional housing units in the area.

According to senior political sources, construction on the projects is set to begin immediately based on previous plans set in place and that the move was coordinated with the U.S.

"It was clear, ahead of the resumption of the negotiations that Israel will not agree to any limitations regarding construction," he said.

Meanwhile, Palestinians in Ramallah and Gaza celebrated the release of the prisoners.

"We welcome our brothers the heroes coming from behind the bars to a world of freedom and liberty," Palestinian Authority President Mahmoud Abbas was quoted as saying at an official reception.

"No permanent peace agreement would be signed as long as there is one single prisoner in Israeli jails," Abbas added.