Israeli Prime Minister Benjamin Netanyahu says his government will not restrict building in East Jerusalem.
Mr. Netanyahu told his Cabinet Sunday he will make Israel's position clear during his visit to Washington this week.
The prime minister's office later announced Mr. Netanyahu will meet U.S. President Barack Obama at the White House on Tuesday.
The visit comes at a time of heightened tensions between Israel and Washington over Israel's construction on land captured during the 1967 Arab-Israeli war.
The Palestinians are demanding the building stop before direct peace talks begin.
George Mitchell, the U.S. envoy on Middle East peace, met Mr. Netanyahu Sunday to try to start indirect talks between Israel and the Palestinians.
The Israeli prime minister heads to Washington Sunday night to address a major pro-Israel lobbying group and meet with congressional leaders.
In the Israeli-occupied West Bank Sunday, Israeli troops killed two Palestinians accused of trying to stab an Israeli soldier near Nablus.
Their deaths bring to four the number of Palestinians killed in the West Bank in the past two days.
Meanwhile, U.N. Secretary-General Ban Ki-moon visited the Palestinian Gaza Strip Sunday and criticized Israel's blockade of the Hamas-controlled territory.
Mr. Ban told reporters that Israel's policy of closing off the coastal enclave is not sustainable and causes unacceptable sufferings.
Israel has imposed a blockade since the 2007 violent takeover of Gaza by the militant group Hamas.
Some information for this report was provided by AP, AFP.