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A new Israeli settlement has been planned for Jews currently living in the Amona outpost in northern West Bank, after it was intended for evacuation by the end of the year, Israeli daily Haaretz reported on Saturday.

The Jews living in the outpost and Israel's defence ministry are working together in the plans for the new settlement, illegal under international law, set to house around 40 Jewish families near the Geulat Zion outpost, home to the attacker charged with murdering members of the Dawabsheh family in Duma.

The Israeli daily reports it has obtained copies of the settlement's architectural plans, which shows it will hold 139 houses.

Meanwhile the US, Israel's key ally, is expected to endorse a tougher stance on Tel Aviv's continued expansion of settlements, demolition of Palestinian homes and illegal land seizures, AP reported.

The Middle East's Quartet of mediators, involved in drafting a report over obstacles in the face of a two-state peace solution set for release in late May or early June, said its primary focus will be the increase of Jewish settlements construction in the West Bank and east Jerusalem.

Washington traditionally tempered statements it made against Israel with careful diplomatic language but the new report is set to see a shift in position, with the US aligning itself closer to the EU, Russia and the UN, who emphasise Israel's role in the Mideast impasse.

The report, which is largely symbolic and requires no action from Tel Aviv, could be unveiled at the UN and possibly sent to the Security Council for an endorsement, AP reported.

Its release is sure to infuriate Israel, where officials are already bracing for expected criticism.

In 1972, there were just over 10,000 Israeli settlers, with 1,500 living in the West Bank and the rest in east Jerusalem.

Two decades later, by the time of the Oslo peace accords, there were 231,200 Israelis living in the Palestinian territories.

That number rose to 365,000 settlements by 2000 and to 474,000 by the time Binyamin Netanyahu became Israel's prime minister again in 2008.

The settlements are now home to more than 570,000 Israelis, according to the Israeli anti-settlement watchdog Peace Now

The settlements are now home to more than 570,000 Israelis, according to the Israeli anti-settlement watchdog Peace Now - 370,000 in the West Bank and 200,000 in east Jerusalem.

Settlements range from small wildcat outposts on West Bank hilltops to developed towns with shopping malls, schools and suburban homes.

Agencies contributed to this report.