Israel's Supreme Planning Council approved plans on Wednesday to build 3,500 settlement units in the occupied West Bank.
The new homes will be constructed in the Jewish-only settlements of Ma'ale Adumim, Efrat and Kedar in the West Bank, Yedioth Ahronoth newspaper reported.
"The State of Israel will continue to grow and develop in all areas, and the settlement will continue to grow, prosper, and flourish," hardline Finance Minister Bezalel Smotrich said in a statement.
"This year we have done great things for the settlements. Along with the housing unit approval, we are promoting the series of settlements, land surveys, security, roads, and other announcements in Judea and Samaria (West Bank) on an unprecedented scale," he added.
According to Palestinian figures, about 725,000 settlers live in 176 Jewish-only settlements and 186 outposts in the occupied West Bank.
Under international law, all Jewish settlements in the occupied territories are considered illegal.
