Israel to build new settlement in West Bank

The only hurdle that remains is Defense Minister Ehud Barak, who plans to approve the Maskiot settlement within weeks, the official said. Barak had signaled to the national planning committee that it should authorize the plan, the official said.

The official spoke on condition of anonymity because the Defense Ministry did not officially announce the settlement would be built in the Jordan Valley Rift, an arid north-south strip that forms Israel's eastern flank with Jordan.

Asked why Israel was moving ahead with the politically charged plan, the official said that it has been in the pipeline for years.

Israel originally announced in 2006 that it would build Maskiot, then froze the plan after international outcry. But earlier this year, nine Israeli families settled in mobile homes at the site, which Palestinians claim as part of a future state.

A number of Israeli politicians however, have said Israel needs to retain control of the Jordan Valley as a buffer between a future Palestinian state and Jordan. The issue remains to be resolved in negotiations between Israel and the Palestinians.

Settlers say around two dozen more families are waiting to join them.

Palestinian negotiator Saeb Erekat accused Israel of undermining U.S.-backed peace talks.

"This is destroying the process of a two-state solution," Erekat said. "I hope the Americans will make the Israelis revoke the decision. I think they can make the Israelis do this."

The U.S. Embassy had no comment. But on her last visit to the region in June, U.S. Secretary of State Condoleezza Rice said settlement building "has the potential to harm the negotiations."