Jared Kushner, President Donald Trump's son-in-law and senior adviser, will meet Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas on Wednesday, beginning a new US effort to revive Middle East peace efforts.
Earlier in the day, Netanyahu tweeted over a picture of a small bulldozer and a digger working on a rocky hill overlooking a vineyard.
The settlement, called Amichai, will house the some 300 Jewish residents evicted from the Amona outpost after the Israeli Supreme Court ruled that the settlement was built illegally on privately owned Palestinian land.
Jared Kushner visited the family of an Israel border policewoman stabbed to death by a Palestinian terrorist following his arrival in Israel.
USA and Arab sources are claiming the two nations are hoping to develop relations with each other, starting with allowing Israel to set up business in Saudi Arabia and giving permission for Israeli airline El Al to use Saudi airspace in its flights, reports The Times.
According to Al Jazeera's Imran Khan, reporting from East Jerusalem in March, "Amona is one of the Israeli settlements in the occupied West Bank that was built on private Palestinian land".
More than 600,000 Israelis live in settlements in the West Bank, including east Jerusalem, that are seen as a major obstacle to peace between Israel and the Palestinians.
It is the first new settlement in the West Bank in some 25 years.
"There was not, and there will never be, as good a government for the settlements as ours", the prime minister added.
Unnamed White House officials cited by several news sources have reiterated that an agreement between the Israelis and Palestinians is a priority for the Trump administration. The settlements are illegal under global law and are seen as a major obstacle to peace sought by the Palestinians and the worldwide community.
Kusher, a senior advisor to President Donald Trump as well as the president's Jewish son-in-law, arrived in Israel on Wednesday to lead the Trump administration's push for restarted peace talks between Israel and the Palestinians.
Israel says the status of settlements as well as other core issues, such as security, should be resolved in peace talks.
Greenblatt, an Orthodox Jew who was Trump's real-estate adviser, is soft on settlements and was even an armed guard at a West Bank yeshiva he studied at in the 1980s.
But the official said any peace deal "will take time" and likely require "many visits by both Mr. Kushner and Mr. Greenblatt" to the region. Israel also cites biblical, historical and security interests to defend settlements.