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.

At the heart of the controversy is the viability of a Palestinian state. Israeli construction in E1 would cut the West Bank into two separate parts, rendering it impossible to establish a contiguous Palestinian state with East Jerusalem as its capital.