A statement from Benjamin Netanyahu's office Friday said 'the prime minister's position is that there is no change in Israeli policy on Jerusalem.'
The tough stance signaled further trouble for the U.S. as it tries to restart Israeli-Palestinian peace talks, which broke down more than a year ago.
Mr Netanyahu left Washington after a last-ditch effort to clear the air with the Americans appeared to fail.
The U.S. wants Israel to stop building Jewish homes in east Jerusalem - the section of the city that the Palestinians want as the capital of a future state.
Netanyahu refuses, saying the entire holy city must remain Israel's eternal capital.
Netanyahu's spokesman Nir Hefez told Israeli Army Radio the understandings Israel had achieved included 'construction policy in Jerusalem doesn't change.'
U.S. officials have insisted on a construction freeze as they work to kick-start Palestinian peace talks.
Israel, which captured east Jerusalem in the 1967 war, insists the city cannot be divided and says it has the right to build anywhere. More
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