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JERUSALEM - Israel officially approved the construction of hundreds of new homes in the West Bank on Monday, deepening its rift with the U.S. over settlement expansion.

The construction is the first approved by the government of Prime Minister Benjamin Netanyahu, who is under heavy U.S. pressure to freeze all settlement activity on captured lands claimed by the Palestinians for a future state.

"Given the choice between making peace and making settlements, they have chosen to make settlements," chief Palestinian negotiator Saeb Erekat said.

White House spokesman Robert Gibbs referred to an earlier statement criticizing the Israeli plans and calling for a construction halt.

Under the order, Defense Minister Ehud Barak authorized construction of 366 new apartments, the Defense Ministry said. An additional 84 new apartments will be approved in the near future, bringing the total to 450.

The order includes permission to proceed with construction of a new settler enclave in the Jordan Valley, an area that is considered vital to a future Palestinian state.