Jerusalem ( CNN ) -- Construction has started for about 600 new housing units in the West Bank since the Israeli settlement freeze ended late last month , the group Peace Now said Thursday . Yariv Oppenheimer , the group 's director , said the Israeli peace organization has surveyed the construction activity and will come out with a detailed report next week . The group has long monitored Jewish settlement activity in the Palestinian territory of the West Bank . The settlement construction issue is threatening to scuttle the reactivated and now stalled peace talks between Israel and the Palestinians . The Palestinians demanded a continuation of the settlement freeze in order to continue with the talks , and the United States has urged Israel to stop settlement activity . But the Israeli government has not continued the freeze . A source in the office of Israeli Prime Minister Benjamin Netanyahu , who asked not to be identified because he is not authorized to speak about the issue , said , `` it is clear '' that any `` limited '' construction wo n't alter `` the future peace map and that there is a need to return to the negotiating table . '' The source said a large part of the construction is in the existing settlement blocs . Ghassan Khatib , a Palestinian government spokesman , told CNN that the settlement building reports `` are very alarming because it is happening on the expense of our basic rights , on our land , and because it will reflect negatively on the sincere effort that the United States and the Quartet members are undertaking to resume a meaningful political process , '' a reference to the United States , Russia , the European Union , and the United Nations . `` We also think that this is a big challenge to the American efforts that would require doubling the pressure on Israel to respect the international legality and requirements of the peace process . '' Dani Dayan , the chairman of the Yesha Council , which represents Israeli settlers , said life is back to normal in the West Bank . `` In the last 10 months there was no new construction . After the freeze ended , private people and private contractors who already have building permits decide if they want to start building or not ; it 's their own private decision . Most of the construction is happening in the settlement blocs . '' Former U.S. President Jimmy Carter , in Israel as part of a mission of world leaders called the Elders , told reporters he hopes Israel will halt its settlement activities long enough for the talks to resume . He noted that Palestinian leaders said they would n't go back to the table as long as the activity continues . Raising the issue of what would happen if direct talks were not resumed , he said the Palestinians could pursue other options , such as asking the United Nations for recognition of a state of Palestine on lands seized by Israel during the 1967 war -- Gaza , the West Bank and East Jerusalem . U.S. Secretary of State Hillary Clinton said Wednesday the U.S. position on settlements is `` well-known and has not changed . And our determination to encourage the parties to continue talking has not wavered . `` We have no illusions about the difficulty of resolving the final status issues of borders and security , settlements and refugees , of Jerusalem and water . And it 's no secret that we are in a difficult period . '' At a Washington event for the American Task Force on Palestine , Clinton said authorities knew `` there would be setbacks and struggles '' when Palestinian President Mahmoud Abbas and Netanyahu came to Washington in September to relaunch direct talks . `` I can not stand here tonight and tell you there is some magic formula that I have discovered that will break through the current impasse . But I can tell you we are working every day , sometimes every hour , to create the conditions for negotiations to continue and succeed , '' said Clinton . `` We are urging both sides to avoid any actions that would undermine trust or prejudice the outcomes of the talks . Sen. Mitchell will soon return to the region for further consultations , '' she added , referring to former Sen. George Mitchell , who is the Obama administration 's special Middle East envoy . `` We have not given up and neither have President Abbas or Prime Minister Netanyahu . '' The American Task Force on Palestine is a nonprofit , nonpartisan group `` dedicated to advocating that it is in the American national interest to promote an end to the conflict in the Middle East through a negotiated agreement that provides for two states -- Israel and Palestine -- living side by side in peace and security , '' according to a statement on its website . CNN 's Kevin Flower , Michal Zippori and Kareem Khadder contributed to this report .
An Israeli source says construction in the West Bank wo n't affect the peace map . Palestinians call the development `` alarming '' Peace Now will issue a detailed report next week .