Israel and Palestine negotiators have agreed on a new settlement plan for a large tract of land on the West Bank.
The Israeli proposal would extend the existing Israeli-Palestinian boundary between the West and East Jerusalem, known as the Green Line, and extend it to a further 1.5 million dunams (4,400 acres).
It also calls for building of several new settlements along the border.
As part of the deal, Palestinians will get land for a future Palestinian state.
It will also be the first step toward the establishment of a Palestinian state in the West bank.
The land on which the Israeli-occupied territories are located is known as Area C, the northern half of the West.
Israel’s settlement blocs already control a third of the area.
Palestinians say the land is illegally occupied by Israel.
Israel has said it will only allow a two-state solution in the area and not expand eastward.
The Israeli government has said the settlements are illegal.
Palestine has long claimed sovereignty over all of the territory, but Israeli officials say they would consider expanding the borders if the Palestinians agree to the move.
Israel, which considers the settlements illegal, has been pushing for the creation of a two state solution since 2006, when it occupied the West Palestinians, and the Gaza Strip.
Israel annexed the West as its capital in a move never recognized internationally.
Palestinics say Israel also has full control over the Gaza strip and the Westbank, but the Israeli government considers it part of a larger Palestinian state under a 1967 truce.
While Israel has rejected international recognition, it has offered a number of measures to ease tensions with the Palestinians, including a new draft peace plan that would expand the border to the eastern side of the border in exchange for a full withdrawal of Israeli forces from the Gaza area.
Israel says it is considering new ways to ease the Palestinian grievances in the wake of the July 7 terrorist attack on the Israeli Embassy in the Egyptian city of Alexandria, which killed three people and wounded two others.