It withdrew settlers and soldiers from Gaza in 2005, but blocks most access to the territory and retains control over the West Bank and east Jerusalem.
Israel bans Israeli journalists from entering the Gaza Strip, saying their presence in Gaza would pose a risk to their security.
Also Tuesday, the Gaza Strip's ruling Hamas announced that Palestinian journalists there have been banned from working for Israeli media outlets.
Nabil Abu Rdeneh, a spokesman for Palestinian President Mahmoud Abbas, said the new Israeli announcement was a "red line" that would block the chance for a two-state solution to the Israeli-Palestinian conflict, in which a Palestinian state would be established alongside Israel.
The newly-approved homes are among more than 5,000 new settler homes in east Jerusalem that Israel pressed ahead over the past week. Palestinians do not recognize Israel's 1967 annexation of the territory and say any Israeli construction there undermines their claims to it. The international community has not recognized Israel's 1967 annexation of east Jerusalem.
Israeli media have no permanent correspondents in the Gaza Strip, but Israeli TV channels and newspapers often employ local Palestinian journalists as stringers. The Gaza journalists do not generally identify themselves to others as working for Israeli outlets because of a taboo against cooperating with Israel.
Israel captured both areas and Gaza in 1967.
The official statement from the Hamas Cabinet called Israeli outlets "hostile entity media institutions."
A government planning committee on Monday moved the project to the advanced stage of asking contractors to submit bids to build them, the Interior Ministry said Tuesday. Once a bid is awarded, construction can begin on the project in the Gilo area, though it can take months, if not longer, to reach that point.
The construction push in east Jerusalem has drawn international condemnation, as have plans to build thousands of more settler homes in the adjacent West Bank.
The Palestinians have said they hope the upgraded status will allow them to return to the negotiating table with a stronger hand. Talks stalled four years ago, primarily over settlement construction.
Israel to build 942 more homes in east JerusalemPrime Minister Benjamin Netanyahu launched a settlement construction push to punish the Palestinians after the United Nations recognized a de facto Palestinian state in east Jerusalem, the West Bank and the Gaza Strip last month. Israel says the Palestinians can achieve a state only through negotiations with the Israeli government, and regards the U.N. bid as a maneuver to sidestep talks.
Ibrahim Barzak in Gaza City, Gaza Strip contributed to this report.
"The Palestinian Authority will take all the possible means available to respond to this," said Abu Rdeneh. The statement was posted on the official Palestinian news agency Wafa.
JERUSALEM (AP) — Israel has advanced the process of building 942 more settler homes in east Jerusalem under a new fast-track plan to tighten its grip on the territory, which the Palestinians claim as the capital of a future state.
An additional 300 units can be built after further planning, said attorney Daniel Seidemann, an expert on Jerusalem construction who sees the building as an obstacle to peacemaking. About 40,000 Israelis live in Gilo.
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"With God's help, we will continue to live and build in Jerusalem, which will remain united under Israeli sovereignty," Israeli Prime Minister Benjamin Netanyahu said at the campaign launch event of his Likud Party. "We will continue to strengthen the settlements." Israeli elections are set for Jan. 22.
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