TEL AVIV, (Reuters) -Israeli far-right Finance Minister Bezalel Smotrich approved plans overnight for a settlement that would split East Jerusalem from the occupied West Bank, a move his office said would bury the idea of a 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.

A Israeli housing project in the West Bank mothballed since 2012 was revived by the finance minister in a quest to prevent the creation of a Palestinian state.