Netanyahu was invited by Obama to meet with him Tuesday at the White House to the Middle East peace process. Image Credit: AP

Washington: Israeli Prime Minister Benjamin Netanyahu says Israel has the right to build in Occupied Jerusalem.

Speaking to pro-Israel activists in the United States, Netanyahu said Monday that Jewish neighborhoods in Occupied Jerusalem will remain part of Israel in any peace deal with the Palestinians.

Israel recently announced new housing plans for Occupied Jerusalem, drawing sharp criticism from the Obama administration. Secretary of State Hillary Rodham Clinton reiterated that criticism on Monday.

Obama will meet Netanyahu on Tuesday at the White House - their first since the diplomatic dispute over the housing announcement.

The meeting will be closed to reporters, an unusual move with a close ally and a sign that the Occupied Jerusalem building row is not healed.