The UK Government has condemned the passing of a bill which legalised settlements built on private Palestinian land.
Roughly 4,000 homes had been built on private land owned by Palestinians in the West Bank.
Now, international authorities and Palestinians are outraged after the Israeli Knesset voted to pass the Land Regularisation Bill to make those settlements retroactively legal.
Prime Minister Benjamin Netanyahu was originally opposed to the bill, but eventually came to support it.
Meanwhile, Foreign Office minister Tobias Ellwood said the decision had damaged Israel's standing on the international stage.
He said: "It's of great concern the bill paves the way for significant growth in settlements in the West Bank, which threatens the viability of the two-state solution.
"As a long-standing friend of Israel, I condemn the passing of this bill by the Knesset, which damages the country's standing with its international partners.
"We reiterate our support for a two-state solution for a secure Israel safe from terrorism and a sovereign Palestinian state."