Jerusalem, July 30 (DPA) Israeli Prime Minister Benjamin Netanyahu has put on ice a project for the construction of some 900 apartments in occupied East Jerusalem, Israel Channel 10 television reported late Wednesday.

His order to freeze the project followed intense US pressure and comes a day after he held long-delayed talks in Jerusalem with US President Barack Obama's special envoy to the Middle East, George Mitchell.

The houses were planned to be built in Pisgat Ze'ev, one of several Jewish neighbourhoods of Jerusalem built on occupied territory - beyond the 'green' armistice line separating Israel from the West Bank.

Palestinians want East Jerusalem - those districts of the city to the east of the green line - to be the capital of their future state.