TEL AVIV, Israel (AP) — Israel gave final approval Wednesday for a controversial settlement project in the occupied West Bank that would effectively cut the territory in two, and that Palestinians and rights groups say could destroy hopes for a future Palestinian state.

Israel's plan to build settlements in the West Bank, known as the E1 project, has sparked strong reactions from several countries.

This plan violates international law and risks permanently endangering prospects for a two-state solution,' says Foreign Ministry