The project, located in a tract of land known as E1 just east of Jerusalem, has been under discussion for more than two decades.

Location of E1 is significant because it is one of the last geographical links between Bethlehem and Ramallah.

Israel gave final approval Wednesday for a controversial settlement project in the occupied West Bank that would effectively cut the territory in two. Meanwhile, the IDF said it had begun the first stages of its planned assault to seize Gaza City.