Israel gave final approval for a settlement project in the occupied West Bank that would effectively cut the territory in two, which Palestinians say could dash hopes for a future Palestinian state.

An Israel Defense Ministry planning committee gave approval Wednesday to a controversial settlement plan that would effectively split the West Bank in two.

The Foreign Ministry "rejects the attempt to impose foreign dictates upon it [Jerusalem]," it said Friday. Foreign ministers from European countries, Australia, and the United Kingdom on Friday condemned Israel's plans to construct a settlement east of Jerusalem,