Israeli settlement expansion on Palestinian territory must stop immediately, Brazilian President Luiz Inacio Lula da Silva has said.

"The expansion of West Bank settlements must be frozen," Lula said after meeting with Acting Palestinian Authority chief, Mahmoud Abbas on Friday in Brazil.

"The borders of the future Palestinian state should be preserved, and freedom of movement needs to be guaranteed in the occupied territories," Lula added.

In recent weeks, Brazil has hinted at ambitions to play a role in Middle East affairs as the country seeks to boost its international profile to match its growing economic status.

On Thursday, Brazil's foreign ministry expressed "deep concern" over Israel's announcement that it would build hundreds of new homes in a settlement in east Jerusalem Al-Quds.

SG/MMA