Whether this is legal or not I'll leave up to the courts in Israel. But not taking into account the PR ramifications of this construction just seems stupid on Israel's part. I understand your right to build in your own country but the timing is bad. It gives your enemies more ammunition to attack you with. We have all seen how the anti-Israel writers react to these kinds of announcements. So now you must endure another ill-founded barrage of worldwide condemnation with silly and hateful comparisons to totalitarian regimes.
In Bahrain, 2 police officers killed, 6 wounded in bombing (AP)
from the article: Israel approves new building plan for West Bank settlement