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JERUSALEM (AFP) -- Israel on Tuesday pushed tenders for more than 700 homes in an illegal settlement in annexed East Jerusalem, as Washington made intensive efforts to salvage a crisis-hit peace process, an Israeli NGO said.

"The ministry of housing is trying to forcefully undermine the peace process ... and (US Secretary of State) John Kerry's efforts to promote it," charged Peace Now's Hagit Ofran, confirming the tenders were for 708 homes in the Gilo settlement in East Jerusalem.

Israel has begun work on over 10,500 housing units in illegal settlements while simultaneously demolishing 146 Palestinian homes since peace talks began in July.

Since 1967, Israel has established over 150 settlements and some 100 outposts in the occupied West Bank, with a settler population of 520,000, according to OCHA.

Over 43 percent of land in the occupied West Bank is allocated to settlement local and regional councils.