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

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.

Israel said Thursday it was moving forward with controversial plans to build thousands of new housing units in the occupied West Bank, a development far-right Finance Minister Bezalel Smotrich said would “permanently bury the idea of a Palestinian state.