TEL AVIV, (Reuters) -Israeli far-right Finance Minister Bezalel Smotrich approved plans overnight for a settlement that would split East Jerusalem from the occupied West Bank, a move his office said would bury the idea of a Palestinian state.

(Reuters) -Israeli settlement building, a point of contention at the heart of the Israeli-Palestinian conflict, has come back into focus after Israel's far-right finance minister revived a plan that would divide the West Bank and cut it off from East Jerusalem.

Bezalel Smotrich, the finance minister, said on Thursday that a plan to significantly expand a settlement near occupied East Jerusalem had won approval. But a procedural step remained.