JERUSALEM - Israel is planning its biggest construction surge in east Jerusalem in decades in a move that critics argue would cement its grip on the contested territory, further complicate any prospects for peace with the Palestinians, and badly rattle Israel's already rocky relations with the rest of the world.

With more than 9,000 apartments in various stages of planning and construction, Prime Minister Benjamin Netanyahu is reaffirming his opposition to ceding any parts of the holy city to the Palestinians, a compromise that two of his predecessors had accepted. The planned construction contributes to completing a ring of Jewish areas around the Arab inner core of east Jerusalem, making it more difficult to one day link it to the West Bank, which surrounds the city on three sides.

The Palestinians, who hope to establish a future capital in the holy city's eastern sector, say that there can be no peace accord without partitioning Jerusalem. They claim that the construction push proves that Netanyahu isn't serious about establishing a Palestinian state alongside Israel.

Within the space of a week, Israeli officials have moved more than 5,000 apartments in east Jerusalem close to the stage where construction can begin, including a project that would build the first new Jewish settlement there in 15 years. With some other 4,000 apartments already being built or about to start, the pace is unprecedented, says Daniel Seidemann, an expert on Jerusalem construction.

Those 9,000 apartments would add almost 20 percent to the existing stock of 50,000 apartments built for Jews in east Jerusalem in the 45 years it has been occupied.

"In the last three months, we're looking at a surge like nothing we've seen in the past since 1967," when Israel captured east Jerusalem, said Seidemann, who views construction as an obstacle to peace.

Israel annexed east Jerusalem, with its Palestinian population, immediately after capturing the territory from Jordan and began building housing developments for Jews there. The annexation has not been recognized internationally. Today, more than 200,000 Jews live in east Jerusalem alongside some 300,000 Palestinians.

Polls show that a majority of Jewish Israelis favor holding on to all of Jerusalem, and construction in east Jerusalem has not stirred passionate opposition among Jewish Israelis. Most don't see the Jewish areas of east Jerusalem as illegitimate settlements - preferring to call them "Jewish neighborhoods" - whereas some in Israel vehemently oppose settlements in the West Bank.

Yet there is growing nervousness in Israel about the new east Jerusalem plans, with some fearing the current diplomatic woes could blossom into economic isolation as well, driven by the world community's clear impatience with Israel's settling of occupied land.

In the longer term, some in Israel warn, if a division is rendered impossible by filling the occupied sector with Jews, there will be no way to reach a deal on the West Bank as well. The area would be in effect absorbed into the Jewish state, rendering it more bi-national and - unless the Palestinians are given the vote - less democratic.