Local sources said that the new structure is very close to the southern wall of the Old City in an area seized by Elad 15 years ago and which has been referred to by the settler organisations as the City of David, Al-Resalah newspaper reported.
The structure, the sources said, is adjacent to land owned by the Palestinian Somreen family, located in the Silwan neighbourhood of Wadi Al-Hilwa.
Elad, Al-Resalah said, was founded in 1986 and has been used as the non-government face of the Israeli occupation's settlement projects.
According to news sites, an Israeli rabbi posted an advert a couple of days ago showing a picture of the Dome of the Rock and calling for the recruitment of an engineer who specialises in destroying buildings.
On Friday, Al-Aqsa Mosque preacher Sheikh Ekrima Sabri warned of increasing dangers targeting Al Aqsa Mosque and its facilities.
During the last month, Israeli Jewish settlers raided Al-Aqsa Mosque 22 times.
Meanwhile, a local report recorded 2,124 Israeli violations against Palestinians in October, including the destruction of 14 homes and 74 commercial and agricultural buildings, in addition to the confiscation of 28 other facilities.
Source: Middle East Monitor