Israel has retroactively authorized nine Jewish settlements on the occupied West Bank.
Mass construction of Israeli homes in the settlements will also be part of the deal.
The newly authorized settlements will likely be a hindrance to a Palestinian peace deal with Israel, as the Jewish settlements are on land the Palestinians want for a Palestinian state.
Most of the international community regards the settlements as illegal.
The authorization is one of the first moves of the government of newly reelected Prime Minister Benjamin Netanyahu.
Recent attacks in occupied East Jerusalem have killed at least 10 Israelis.