Indirect talks with Israel will cease to go forward unless Israeli plans to construct 1,600 homes in East Jerusalem are axed, chief PLO negotiator Saeb Erekat said Thursday.

The statement followed one by Arab League chief Amr Moussa, who announced Wednesday that "The Palestinian president decided he will not enter into those negotiations now ... the Palestinian side is not ready to negotiate under the present circumstances."

Moussa later told reporters that "The talks have already stopped."

Erekat gave conditions for the resumption of talks, saying "We want to hear from [United States envoy George] Mitchell that Israel has canceled the decision to build housing units before we start the negotiations."

The announcements followed a wave of criticism, from Palestinians and then from visiting US Vice President Joe Biden, who warned that the announcement poisoned the atmosphere necessary for peace talks to continue.

On Wednesday, UN Secretary-General Ban Ki Moon condemned the move, saying in a statement that "settlements are illegal under international law."

Ban stressed that "settlement activity is contrary to Israel's obligations under the Road Map and undermines any movement towards a viable peace process."

1,600 announced, 50,000 in the works

On Thursday, Israeli media reports said another 50,000 settlement units were in various stages of planning and approval.

Israel's daily Haaretz cited documents from the country's planning office, saying 20,000 settlement units "are already in advanced stages of approval and implementation, while plans for the remainder have yet to be submitted to the planning committees."

Quartet to meet over Mideast progress in Russia next week

Ban is set to travel to Israel, the West Bank and the Gaza Strip after after the 19 March Moscow meeting on the Middle East peace process, his representative announced Thursday.

In Russia, members of the Quartet will discuss progress toward a two-state solution for Israel and Palestine.

The meeting comes as proximity talks between Israeli and Palestinian negotiators began Sunday, and were postponed on Thursday.