Israel's security cabinet has approved the recognition of 19 new settlements in the occupied West Bank as the government continues its settlement expansion push.

Far-right Finance Minister Bezalel Smotrich, a settler who proposed the move alongside Defence Minister Israel Katz, said the decision was about blocking the establishment of a Palestinian state.

Israeli settlements in the occupied West Bank are considered illegal under international law.

Saudi Arabia condemned the move. UN Secretary-General Antonio Guterres has said Israel's "relentless" settlement expansion fuels tensions, restricts Palestinian access to land, and threatens the viability of a sovereign Palestinian state.

Violence in the occupied West Bank has surged since the war in Gaza began in October 2023, further heightening fears that settlement expansion could entrench Israel's occupation and undermine a two-state solution.

The two-state solution refers to the creation of a Palestinian state in the West Bank and Gaza Strip, with East Jerusalem as its capital, broadly along the lines that existed prior to the 1967 Arab-Israeli war.

Since taking office in 2022, the current Israeli government has significantly increased the approval of new settlements and begun the legalisation process for unauthorised outposts, recognising them as "neighbourhoods" of existing settlements.

The most recent decision brings the total number of settlements approved over the past three years to 69, according to Smotrich.

The approvals come just days after the United Nations said settlement expansion had reached its highest level since 2017.

The latest approvals include the re-establishment of two settlements — Ganim and Kadim — which were dismantled nearly 20 years ago.

In May, Israel approved 22 new settlements in the occupied West Bank - the biggest expansion in decades.

The Israeli government also approved plans in August to build more than 3,000 homes in the so-called E1 project between Jerusalem and the Maale Adumim settlement, which had been frozen for decades amid fierce opposition internationally.

Smotrich at the time said the plan would "bury the idea of a Palestinian state".

About 700,000 settlers live in approximately 160 settlements in the West Bank and East Jerusalem, according to Israeli anti-settlement group Peace Now. It is land Palestinians seek for a future independent state.

Settlement expansion has angered Arab nations who have consistently said it undermines prospects for a two-state solution.

It has also raised concerns about the possible annexing of the occupied West Bank.

US President Donald Trump had warned Israel about such a move, telling TIME magazine that Israel would lose all its support from the US if it happened.

In September, the UK - along with other countries including Australia and Canada - recognised a Palestinian state, a significant although symbolic change in government policy.

Israel opposed the move, with Israeli Prime Minister Benjamin Netanyahu saying a Palestinian state "will not happen". (BBC)

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