The joint statement came as tensions mounted in East Jerusalem ahead of a hearing that could see Palestinian families evicted from Sheikh Jarrah, a neighbourhood where Jewish settlers backed by an Israeli court have taken over some homes.
"If implemented, the decision to advance settlements in Har Homa, between East Jerusalem and Bethlehem, will cause further damage to the prospects for a viable Palestinian State." Israel captured East Jerusalem, the West Bank and the Gaza Strip in a 1967 war. Palestinians want East Jerusalem as the capital of a future state and most countries regard settlements that Israel has built there as illegal.
In Sheikh Jarrah, settlers and Palestinians living on the street where the evictions might take place have faced off in nightly clashes during Ramadan.