TEL AVIV, May 16, 2010 (WAFA)-Israeli Interior Minister Eli Yishai declared Thursday that Israel had not agreed to freeze construction in East Jerusalem, adding that American demands to do so would never be met daily Haaretz said.

'There is not and never has been a freeze on construction in Jerusalem, nor will there ever be,' said Yishai, whose approval of a 1,600 new housing units in East Jerusalem during U.S. Vice President Joe Biden's visit in March sparked tension in U.S.-Israeli ties.

Yishai, who heads the ultra-Orthodox Shas party, told his faction's newspaper that the issue would not be raised during upcoming visits by senior American officials.

The Interior Minister said that he intended to expedite procedures for planning and construction across Israel, but particularly in Jerusalem. Residents of the capital were suffering a serious housing crisis, Yishai told the newspaper, forcing many to leave the city.

'We will build everywhere in the capital of the Jewish nation's everlasting homeland, and I have clarified this to our American counterparts and friends,' said Yishai.

He added that he had instructed the Jerusalem Building and Planning Council to convene after several delayed sessions to discuss renewing construction in the Arab area of Shoafat.

Yishai's comments came just a day after the U.S. State Department warned both Palestinians and Israelis to avoid taking inflammatory actions in Jerusalem.