The approvals were given on Wednesday by a defence ministry committee with authority over settlement construction.
Some 352 of the homes received final approval, while the others are at an earlier stage in the process, Hagit Ofran of Peace Now, which monitors settlement building, told AFP.
A total of 1,122 housing units were advanced, including seven already existing homes given retroactive approval.
According to Ofran, the majority of the approvals are for settlements deep in the West Bank that Israel would likely need to evacuate as part of a two-state solution to the Israeli-Palestinian conflict.
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A shooting that killed an Israeli settler on Tuesday in the West Bank led to fresh calls for further settlement building, though the plans approved on Wednesday were already in the works.
According to Peace Now, 6,742 housing projects were approved in the settlements last year, the highest figure since 2013.
Israeli settlements are seen as illegal under international law and major obstacles to peace as they are built on land the Palestinians see as part of their future state.
Israel faced sharp criticism from the administration of former US president Barack Obama over settlement construction, but that has not been the case with US President Donald Trump's White House and Israeli officials have sought to take advantage of his backing.