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"I therefore deplore today's decision to advance settlement expansion in East Jerusalem with approximately 1000 new housing units in Gilo," she said in a statement.
"I call on the Israeli authorities to reverse this plan."
Earlier, Ashton told the European parliament that "settlement activity threatens the viability of an agreed two-state solution and runs contrary to the Israeli-stated commitment to resume negotiations".
Ashton told MEPs that she would continue to "make it clear" in future meetings with Israeli Prime Minister Benjamin Netanyahu that the EU considers settlement activity illegal under international law.
"He should stop announcing them and, more importantly, stop building them," she said.
She recalled that the Middle East Quartet of peace negotiators -- the EU, Russia, the United Nations and the United States -- have pleaded with Israelis and Palestinians to refrain from provocative actions if talks are to resume.
Ashton briefed Euro MPs on her diplomatic efforts at the UN General Assembly last week, which was marked by Palestinian president Mahmud Abbas's bid for full state membership of the UN despite Israeli and US objections.
The Palestinian leadership said Israel's approval of new housing units was a snub to a Quartet call for the rival sides to return to the negotiating table within a month, with the goal of reaching a deal within a year.
Ashton said: "I think it's wrong to get people to live in a place which, when you look at a negotiated settlement, they're probably going to have to move from. Actually, that doesn't make any sense to me."
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"I call on the Israeli authorities to reverse this plan."
Earlier, Ashton told the European parliament that "settlement activity threatens the viability of an agreed two-state solution and runs contrary to the Israeli-stated commitment to resume negotiations".
Ashton told MEPs that she would continue to "make it clear" in future meetings with Israeli Prime Minister Benjamin Netanyahu that the EU considers settlement activity illegal under international law.
"He should stop announcing them and, more importantly, stop building them," she said.
She recalled that the Middle East Quartet of peace negotiators -- the EU, Russia, the United Nations and the United States -- have pleaded with Israelis and Palestinians to refrain from provocative actions if talks are to resume.
Ashton briefed Euro MPs on her diplomatic efforts at the UN General Assembly last week, which was marked by Palestinian president Mahmud Abbas's bid for full state membership of the UN despite Israeli and US objections.
The Palestinian leadership said Israel's approval of new housing units was a snub to a Quartet call for the rival sides to return to the negotiating table within a month, with the goal of reaching a deal within a year.
Ashton said: "I think it's wrong to get people to live in a place which, when you look at a negotiated settlement, they're probably going to have to move from. Actually, that doesn't make any sense to me."
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