Israel gave final approval Wednesday for a controversial settlement project in the occupied West Bank that would effectively cut the territory in two, and that Palestinians and rights groups say could destroy hopes for a future Palestinian state.

The project, located in a tract of land known as E1 just east of Jerusalem, has been under discussion for more than two decades.

United Nations condemns Israel’s move to grant approval for building more than 3,400 housing units in occupied territory, warning it threatens two-state solution