UN chief Ban Ki-moon on Tuesday called for restraint in Jerusalem amid rising tensions in the Holy City over Israel's plan to build more Jewish settler homes.

The secretary general reminded Israelis and Palestinians that the "status of Jerusalem is the subject of final negotiation" and reiterated "without equivocation" that "[Jewish] settlements are illegal under international law."

"I call for restraint and calm by all," he said in reaction to Tuesday's clashes between hundreds of Palestinians and Israeli security forces across East Jerusalem.

Israel announced last week that it would build new homes in east Jerusalem –a move that has threatened US-brokered indirect Israeli-Palestinians talks and has been roundly condemned by the international community.

Ban said the Quartet –the EU, Russia, the UN and the US –would discuss "additional steps" it can take to facilitate the resumption of stalled peace talks between Israelis and Palestinians.

He added that he was "troubled" by the "unilateral announcement" by Israeli Foreign Minister Avigdor Lieberman of the content of a telephone conversation in which Lieberman reportedly called for a more balanced stance by the world body.

Ban said such diplomatic exchanges are confidential.

He also said he was "gravely concerned" about the situation in the Hamas-ruled Gaza Strip, which has been under a crippling Israeli blockade.

"The Israeli policy of closure destroys hope –hope of a better life for all people, hope for recovery from the destruction and pain of the recent war," the UN chief said.

Ban said he would go to Gaza to "assess the situation for myself, first-hand" during his tour of Israel and the occupied Palestinian territories following his Moscow visit.

"It is time for a change of direction," the UN chief said, referring to the Israeli blockade.

-AFP/NOW Lebanon