Jerusalem (AFP) – Israel approved a major settlement project on Wednesday in an area of the occupied West Bank that the international community has warned threatens the viability of a future Palestinian state.

Last week, Israel’s far-right Finance Minister Bezalel Smotrich backed plans to build around 3,400 homes on the ultra-sensitive tract of land, which lies between Jerusalem and the Israeli settlement of Maale Adumim.

“I am pleased to announce that just a short while ago, the civil administration approved the planning for the construction of the E1 neighbourhood,” the mayor of Maale Adumim, Guy Yifrach, said in a statement Wednesday.

The Ramallah-based Palestinian Authority swiftly slammed the move.

“This undermines the chances of implementing the two-state solution, establishing a Palestinian state on the ground, and fragments its geographic and demographic unity,” the PA’s foreign ministry said in a statement.

It added the move would entrench “division of the occupied West Bank into isolated areas and cantons that are disconnected from one another, turning them into something akin to real prisons, where movement is only possible through Israeli checkpoints and under the terror of armed settler militias”.

All of Israel’s settlements in the West Bank, occupied since 1967, are considered illegal under international law, regardless of whether they have Israeli planning permission.

Israel heavily restricts the movement of West Bank Palestinians, who must obtain permits from authorities to travel through checkpoints to cross into east Jerusalem or Israel.

King Abdullah II of Jordan on Wednesday also affirmed his country’s rejection of the E1 project, saying “the two-state solution is the only way to achieve a just and comprehensive peace”.

UN chief Antonio Guterres warned last week that constructing Israeli homes in the E1 area would “put an end to” hopes for a two-state solution to the Israeli-Palestinian conflict.

Aviv Tatarsky, a researcher at Ir Amim, an Israeli NGO focusing on Jerusalem within the context of the Israeli-Palestinian conflict, also condemned the move.

“Today’s approval demonstrates how determined Israel is in pursuing what Minister Smotrich has described as a strategic programme to bury the possibility of a Palestinian state and to effectively annex the West Bank,” he said.

“This is a conscious Israeli choice to implement an apartheid regime,” he added, calling on the international community to take urgent and effective measures against the move.

Far-right Israeli ministers have in recent months openly called for Israel’s annexation of the territory.

Israeli NGO Peace Now, which monitors settlement activity in the West Bank, said last week that infrastructure work in E1 could begin within a few months, and housing construction within about a year.