Israel has given final approval for the construction of 2,166 new homes around the occupied West Bank.
According to foreign news agency AFP, the resettlement expansion plan will resume after an eight-month delay.
The development comes at a time when the UAE and the crisis have recently signed "peace agreements" to normalize relations with Israel.
Reports from the deal said that Israel would delay its plan for unilateral annexation of parts of the occupied West Bank.
Following Israel's approval of the West Bank population, Peace Now, an NGO, said the Israeli prime minister's decision would shake hopes for Israeli-Arab peace.
An additional 2,000 houses are expected to be approved on Thursday, he said.
A statement from Israel said, "The Israeli prime minister is fully prepared to join the West Bank."
Jordan, on the other hand, has condemned the Israeli decision.
Jordanian Foreign Ministry spokesman Dafla Ali al-Fayez called the Israeli decision "unilateral and illegal."
Palestinian presidential spokesman Nabil Abu Rudeina said the Israeli move benefited relations in the Gulf and "blind support for the Trump administration."
"The policy of the Israeli prime minister is to take the region to the brink of disaster," he said in a statement.
It may be recalled that on August 15, US President Donald Trump, while announcing the peace agreement between Israel and the United Arab Emirates (UAE), said that the two countries have agreed to establish bilateral relations.
Donald Trump said in a tweet that the normalization of relations between the UAE and Israel was a "huge step forward".
Later, on September 11, US President Donald Trump announced a peace agreement between Israel and Bahrain, and Bahrain, following in the footsteps of the United Arab Emirates, announced the resumption of diplomatic relations with Israel.
Calling it a historic day, the US president said that Israel and Bahrain were establishing genuine diplomatic and trade relations.
He told reporters at the White House that they would exchange embassies and diplomats, launch direct flights between the two countries and cooperate in various fields, including education, health, business, technology, security and agriculture. Will start.
On this agreement, Pakistan had taken the position that "the rights of the Palestinians include their right to self-determination, while peace and stability in the Middle East is also a top priority for Pakistan."
Foreign Office spokesman Zahid Hafeez said in response to the agreement to normalize relations between Israel and the United Arab Emirates that "this development will have far-reaching effects."
