The Palestinian government condemned the scheme, calling it illegal and saying the fragmentation of territory would rip up peace plans for the region.

"The plan is the 'final nail in the coffin' for the concept of a Palestinian state," Finance Minister Bezalel Smotrich remarked. Finance Minister Bezalel Smotrich approved the new E1 settlement plan near Ma’aleh Adumim,

Bezalel Smotrich, the finance minister, said on Thursday that a plan to significantly expand a settlement near occupied East Jerusalem had won approval. But a procedural step remained.