Britain, France, Germany, Italy and Canada have condemned Israel’s plan to open tenders for more than 1,200 settlement homes in the occupied West Bank.

The countries described the move as unacceptable and urged Israel to withdraw the plans, warning that development in the E1 area could undermine hopes for a two-state solution by dividing the West Bank and isolating East Jerusalem.

The United Nations has also warned that the project poses a serious threat to the creation of a contiguous Palestinian state.

Israel, however, has continued to expand settlements despite international opposition.