The decision came shortly before US Secretary of State John Kerry was to arrive in neighboring Jordan on a mission aimed at restoring calm in the Holy Land after weeks of unrest.
Much of the recent violence has stemmed from tensions surrounding a sensitive holy site revered by Muslims and Jews. The collapse of US brokered peace talks, Israel's bloody war last summer in the Gaza Strip and continued Israeli settlement construction in east Jerusalem have added to it.
Any Israeli construction for Jewish areas of east Jerusalem risks setting off a diplomatic firestorm especially in the current fragile environment.
Israel captured east Jerusalem in 1967 and annexed the area in a move that is not internationally recognized. The Palestinians claim east Jerusalem as their capital.
The international community does not recognize Israeli sovereignty in the area and opposes settlement construction. More than 200,000 Jewish Israelis live in developments like Ramot that ring east Jerusalem to help cement Israeli control.
Under a longstanding arrangement, Jordan holds custodial rights over Muslim holy sites in Jerusalem, including the compound known to Jews as the Temple Mount and to Muslims as the Noble Sanctuary.
Visits by Jewish worshippers to the site have raised concerns among Muslims that Israel is secretly trying to take over the site. The tensions have boiled over into violent demonstrations and deadly violence. Abbas accused Israeli
In the latest unrest, an attack against a mosque in a West Bank village earlier Wednesday ignited a fire that destroyed its first floor. Faraj al-Naasan, the mayor of the village of Mughayer, north of Ramallah, blamed Jewish settlers for the blaze.
Israeli police also said someone threw a Molotov cocktail at an ancient synagogue in the Israeli-Arab town of Shfaram late Tuesday night, causing light damage.
