European Union foreign policy chief Catherine Ashton on Friday said she "deeply regrets" Israel's decision to build 797 housing units in Gilo, which is located beyond the 1967 Green Line in south Jerusalem.

"The High Representative deeply regrets the decision by the Israeli Ministry of Interior to approve the expansion of Gilo settlement by 797 new housing units," an EU statement said.

The Interior Ministry approved a plan on Thursday to expand the settlement neighborhood of Gilo by 797 units. The district committee's approval of Mordot Gilo West Plan will form part of a wider expansion across the Southern and Western Slopes of Gilo.