Benjamin Netanyahu's office announced the move, saying it would include 100 homes in a settlement where an Israeli woman was killed recently in an alleged terror attack, AP reported.
Biden is opposed to settlement expansion and has pledged a more even-handed approach to the Israeli-Palestinian conflict.
Israel captured the West Bank and east Jerusalem al-Quds in the 1967 war, territories the Palestinians want for their future state. Nearly 500,000 people live in settlements scattered across the West Bank. The Palestinians and the international community view settlements as a violation of international law and an obstacle to peace.
Outgoing US President Donald Trump's administration provided unprecedented support to Israel in its conflict with the Palestinians, including by abandoning a decades-old US policy of opposing settlements.
US Secretary of State Mike Pompeo last year became the first top US diplomat to visit a West Bank settlement.