The Palestinian leader, Mahmud Abbas, has urged Israel to stop all its settlement activity in the West Bank if it is serious about peace.
Having presided over the first ever withdrawal from occupied Palestinian territory, Israeli Prime Minister, Ariel Sharon, made clear earlier this week that he would 'continue and develop' Jewish settlements in the West Bank.
Israel's historic pullout from Gaza, which is nearing completion ahead of schedule, has been seen as an opportunity to revitalise the moribund peace process.
Israeli security forces said they have evicted more than 85% of Jewish settlers from the Gaza Strip and all are expected to be out by Monday.
After three days of forced evacuations only four of the 21 settlements remain.
Troops and police are then expected to turn their attention to two remaining West Bank settlements that are due to be cleared.
Earlier, Mahmoud Abbas spoke of a sense of joy among Palestinians at the withdrawal of Israeli settlers from the Gaza Strip, but also warned that great challenges lie ahead.
The Palestinian leader also announced that some 3,000 new homes are to be built in the former Israeli settlement of Morag in the southern Gaza Strip.
'A new neighbourhood will be built, with 3,000 new housing units, on what was known as the settlement of Morag,' he said.
Morag lies just a few kilometres from the Palestinian town of Khan Yunis.
He added that the settlement of Netzarim, which is due to be evacuated by Israeli forces early next week, would also be used as part of a new port complex in Gaza.