The planned park will be built between the villages of Issawiya and Al-Tur, AFP reported on Thursday.
The project was announced at the end of October along with the construction of a further 1,500 homes in the illegal settlement of Ramat Shlomo in the area.
Tel Aviv claims the park is aimed at preserving the environment, but Israeli media have quoted an employee of Israel’s Nature and Parks Authority as saying that the project's real aim is to block Palestinian construction in the area.
Some figures within the Israeli cabinet are currently at odds over the planned project.
On Wednesday, acting Palestinian Authority chief Mahmoud Abbas said his negotiators have resigned over the lack of progress in the US-brokered talks as a result of continued construction of illegal settlements by Israel.
Palestinian and Israeli negotiators began a fresh round of talks in July. Previous talks between Palestinians and Israel broke down in September 2010 after Tel Aviv refused to freeze its settlement activities in the West Bank.
Since the resumption of the so-called peace talks, Israel has announced plans for building several thousands of new settler units in the West Bank and East al-Quds.
The presence and continued expansion of Israeli settlements in occupied Palestine has created a major obstacle for the efforts made to establish peace in the Middle East.
More than half a million Israelis live in over 120 illegal settlements built since Israel’s occupation of the Palestinian territories of the West Bank and East al-Quds in 1967.
The United Nations and most countries regard the Israeli settlements as illegal because the territories were captured by Israel in a war in 1967 and are hence subject to the Geneva Conventions, which forbids construction on occupied lands
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