Benjamin Netanyahu has called for building a new neighborhood of thousands of houses in a disputed West Bank area outside East Jerusalem at the beginning of his campaign for Likud chairman and premiership, Israel Radio reported Wednesday.

Netanyahu is to visit the area and issue a call to build 5,000 housing units in the area designated E1, which is located between Jerusalem and the settlement bloc of Ma'aleh Adumim, about 10 km east of Jerusalem, said the report.

In a direct challenge to Israeli Prime Minister Ariel Sharon, Netanyahu declared his candidacy for Likud chairmanship and as the party's candidate for the premiership on Tuesday.

The move could set in motion an eventual split in the party.

Sharon's supporters accuse Netanyahu and other Sharon opponents of attempting to oust the prime minister even at the price of sending the party into the opposition.

They said Sharon had not yet made any decisions about his political future.

Washington has expressed concerns over the concept of new housing construction in the West Bank, part of which is wanted by the Palestinians for a viable future state.

Sharon said Monday that not all Jewish settlements in the West Bank will remain under Israeli control, but the larger settlement blocs in the West Bank would "remain in our hands permanently."

Netanyahu, 55, quitted his financial minister post in Sharon's cabinet right before the Gaza pullout to protest against the government move.

Source: Xinhua