The discussion was pulled from the agenda in a move following last week's UN Security Council resolution demanding a halt to Israeli settlement building and with Kerry set for a major speech on the conflict later in the day.
Hanan Rubin, a Jerusalem city councillor and a member of the planning committee that was to discuss the permits, told AFP its members had been informed of Netanyahu's request by the committee chairman.
Netanyahu's spokesman did not immediately respond to a request for comment.
Rubin said the committee had been planning to vote on permits for 492 units in the Ramat Shlomo and Ramot settlement neighbourhoods of mainly Palestinian east Jerusalem.
He said the plans would be brought forward at a later date, though it was unclear when.
The Ir Amim NGO, which monitors settlement activity, had earlier said the committee was to discuss permits for 618 housing units in east Jerusalem.
By declining to use its veto, the United States enabled the adoption of the first UN resolution since 1979 to condemn Israel over its settlement policy.
Netanyahu has reacted furiously, accusing US President Barack Obama's administration of being behind the resolution and vowing not to abide by it.
US President-elect Donald Trump, who takes office on January 20, has signalled far more favourable policy toward Israel and called for the United States to veto the resolution.
Israel's right-wing has welcomed Trump's election, with key members of Netanyahu's coalition calling for an end to the idea of a Palestinian state, the basis of years of negotiations.
Beyond that, plans by France to hold an international Middle East peace conference on January 15 is another point of worry for Israel.
Officials are concerned Kerry's speech and the conference could lead to further action against Israel that would then be taken to the Security Council for approval before Trump takes over as US president.
Israel has already taken diplomatic steps in response to what it calls the "shameful" UN resolution.
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
