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For the past two decades, the international community has backed a two-state solution to the conflict, where a Palestinian state would be established alongside Israel in territory it captured in the 1967 war. The international community mostly views settlements in that territory illegal and an obstacle to peace. Israel says settlements along with other issues like security should be resolved in peace talks. "Today's announcement once again proves that Israel is more committed to appeasing its illegal settler population than to abiding by the requirements for stability and a just peace," said Hanan Ashrawi, an executive committee member of the Palestine Liberation Organization. There was no immediate reaction from US President Donald Trump's administration, which is in discussions with Israel on limiting the construction of settlements on land Palestinians seek for a state. Israel cites biblical, historical and political links to the land, as well as security interests, to defend its actions. Mr Netanyahu first promised the new settlement at Emek Shilo in February, shortly before dozens of Israeli families were evicted from Amona. Their houses were razed after Israel's Supreme Court said they were built illegally on privately owned Palestinian land . Establishing a new settlement may be a way for Mr Netanyahu to appease far-right members of his coalition government who are likely to object to any concessions to US demands for restraints on building.