Five Israeli settlers entered a five-story building in the Jabal Mukaber neighborhood of East Jerusalem early Monday morning, apparently in an effort to establish a new settlement in this Palestinian area.

The building, which was erected in recent years, has remained largely empty, except for one Palestinian family living on the top floor.

At 2:00 A.M. on Monday, settler security forces entered the building, switched the locks to its entrance and settled inside. No confrontations were reported.

Residents of the neighborhood say the building was constructed by a Palestinian, but was apparently sold to one of the settler organizations operating in East Jerusalem. Another building not far from it was purchased by the Elad organization two years ago.

Responding to the settler takeover of the home, Peace Now issued the following statement: "This is a dangerous provocation. Entering homes in the heart of Palestinian East Jerusalem foments friction and heightens tensions in what is already a highly sensitive city.

"Israeli settlements in Palestinian neighborhoods may constitute an obstacle to future negotiation towards an agreement based on two states for two peoples."