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.

Foreign Secretary David Lammy said the settlement, planned to be built east of Jerusalem, "would divide a Palestinian state in two".

Israel has approved a controversial illegal settlement project in the occupied West Bank, a move critics say could destroy the possibility of Israel has approved a controversial illegal settlement project in the occupied West Bank,