Benjamin Netanyahu's Likud is vying with other rightwing parties for the settler vote.

AFP/Jerusalem

Israel on Friday published tenders to build 450 new settler homes in the occupied West Bank, a watchdog said, in a plan denounced by the Palestinians as a "war crime".

Settlements watchdog Peace Now tied the move to Israel's March 17 general election in which Prime Minister Benjamin Netanyahu's Likud is competing with other rightwing parties for the settler vote.

"It is a pre-election grab to establish facts on the ground made by the Netanyahu government," a Peace Now statement said.

It said the inevitable US condemnation would add to strains over Netanyahu's acceptance of a controversial invitation to address Congress on Iran that has sparked a bitter row with the White House.

"After embarrassing the Obama administration with the invitation to the congress, Netanyahu adds another slap in the face of the Americans, and shows no respect to Israel's closest ally," it said.

Daniel Seidemann, head of the Terrestrial Jerusalem group which also monitors settlement, said the latest plans were the first of their kind to be announced in several months and unlikely to be the last before the election.

"It's the opening of the settlement floodgates," he said.

"This could hardly be an accident," he said. "It could not have taken place without Netanyahu's knowledge and consent."

The Israeli construction ministry, headed by minister Uri Ariel of the hardline nationalist Jewish Home party, denied that the timing was politically motivated.

"The tenders were offered last year and failed (to attract contractors)," a ministry statement said. "Unsuccessful tenders are automatically reissued by the professional officials at the Israel Lands Administration."

Peace Now said the new homes were to be built in four existing settlements across the West Bank - 114 in Adam, 156 in Elkana, 78 in Alfei Menashe and 102 in Kiryat Arba.

Seidemann, who had earlier spoken of 430 new settler homes, said the figures given by Peace Now were correct.

Palestine Liberation Organisation (PLO) official Wassel Abu Yusef slammed the project.

"What the Israelis announced is part of a wider war... against the Palestinian people," Abu Yusef said.

"This is a war crime which should push the settlements issue to the International Criminal Court."

East Jerusalem next?  

Seidemann, whose group particularly monitors settlement in Israeli-annexed east Jerusalem, predicted that building plans there were likely to be announced soon.

"Netanyahu has a tendency, especially when he's having trouble in the polls, to do something outrageous in Jerusalem," he said.

He pointed to Givat Hamatos, where Peace Now revealed on October 1 that final approval had been granted for the construction of 2,610 settler homes.

"I don't think it's over," he said. "I would be very concerned and keep a close eye on things like Givat Hamatos."

A poll published in Friday's Jerusalem Post showed Likud rallying, after weeks of lagging behind the Zionist Union alliance of Labour and the centrist HaTnuah party of former justice minister Tzipi Livni.

The Post linked the surge to a Hezbollah missile strike on Wednesday which killed two Israeli soldiers, at the time the survey was being conducted by the Panels Research organisation.

It gave Likud a projected 25 places in the 120-seat parliament, just ahead of the Zionist Union's 24.

"Last week the Zionist Union was ahead of the Likud by two seats and two weeks ago the lead was three," the daily wrote.

But in a contradictory finding not unusual in Israeli polls, it said that 52% of respondents did not want Netanyahu to remain premier.