“The Israeli policy of settlement construction in the occupied Palestinian areas constitutes a serious violation of international law and undermines efforts towards a two-state solution,” a foreign office spokesperson said in Berlin, German news agency dpa reported.

“We see as particularly disturbing and cynical” that the decision was introduced by far-right Finance Minister Bezalel Smotrich as a response to the recognition of Palestine by a number of countries, the spokesperson also said.

An end to the conflict should be achieved in conjunction with the Palestinian Authority (PA), and not against it, he added.

The Israeli security cabinet earlier approved the legalisation of five settlement outposts, along with sanctions on several PA officials.