Israel gave final approval for a settlement project in the occupied West Bank that would effectively cut the territory in two, which Palestinians say could dash hopes for a future Palestinian state.

An Israel Defense Ministry planning committee gave approval Wednesday to a controversial settlement plan that would effectively split the West Bank in two.

Israel has approved a long-delayed settlement project that would build 3,400 housing units for Jews in the West Bank, in a move that both its backers and its many critics say would undercut Palestinian ambitions to control the region.