The number of Israeli settlers to settle in the West Bank will be doubled to 100, as part of a plan to bolster the security of the area’s Jewish settlers.
The move was approved by the Knesset, Israel’s parliament, on Wednesday.
The plan follows the killing of a settler in the occupied West Bank on Wednesday, which sparked protests and unrest in the region.
The settler was shot and killed by an Israeli settler who then ran away from the scene.
The government says it will allocate more than 200,000 dunams (30,000 acres) of land to Jewish settlers, who will receive a share of the land, and a Jewish district will be established.
The Jewish settlement of Amona, which lies on top of the settlement, was established in the 1960s and was considered to be illegal under international law.
Israeli officials say that settlement activities are not legal under the Fourth Geneva Convention and have not been recognised by the international community.
Israel is building an expansion of the outpost on top an existing one.
The Knessen approved the plan, which also includes plans to establish an airport at the site, as a way to provide additional security to settlers, according to the Israeli newspaper Haaretz.
The announcement comes just days after the Palestinian president, Mahmoud Abbas, called for an end to Israeli settlement building in the territory.
“Israel’s decision to expand its settlements on occupied Palestinian land is illegitimate, illegitimate, and is part of the continuing campaign to deprive the Palestinians of their land, their rights and their dignity,” Abbas said in a speech to the Kedmiya conference, according the Israeli news site Maariv.
He also called for the immediate end of all Israeli settlements.
On Thursday, Palestinian Authority President Mahmoud Abbas called for a “state of national emergency” in the Gaza Strip, after a suicide bomber killed at least four people and wounded nine others at a checkpoint near the city of Rafah.
The Israeli military said on Wednesday that it would allow the Gaza border crossing to be opened, after the first two Israeli settlers killed in a suicide bombing of a Palestinian market in the Strip were identified.
On Wednesday, Israeli Prime Minister Benjamin Netanyahu said the government will make it easier for the Palestinian Authority to grant construction permits for Jewish settlements.
The Palestinians are currently seeking a two-state solution that would see them on one side of a pre-1967 border and Israel on the other.
Israel’s plan for a Jewish settlement in the area was first unveiled in July.
It will see about 10,000 settlers living in the areas currently controlled by the Palestinian militant group Hamas, and about 50,000 Israelis living there.
The Palestinian Authority has repeatedly accused Israel of breaching international law by building settlements in the Palestinian territory, which is home to some of the most densely populated areas in the world.
The International Criminal Court has repeatedly ruled that Israel is committing war crimes in its policies towards the Palestinian people.