Australia is among 21 countries that have signed a joint statement calling Israel's approval of a major settlement project in the West Bank "unacceptable" and a "violation of international law".
Israel gave the plan approval on Wednesday night after it was flagged by far-right Israeli finance minister Bezalel Smotrich. It covers the 12 square km parcel of land known as E1, east of Jerusalem.
Palestinians and rights groups say the plan would impede hopes of a future Palestinian state by effectively cutting the West Bank into two separate parts.
The plan has been widely condemned as a breach of international law that threatens a two-state solution, and Smotrich himself said it would "bury" the idea of a Palestinian state when announcing it last week.

Development on the sensitive portion of land has been under consideration by Israel for more than two decades. Source: AP / Ohad Zwigenberg
'Unacceptable and a violation of international law'
The joint statement was signed by Foreign Minister Penny Wong and her counterparts from 20 countries: Belgium, Canada, Denmark, Estonia, Finland, France, Iceland, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Portugal, Slovenia, Spain, Sweden and the United Kingdom.
The ministers said the decision by the Israeli higher planning committee to approve plans for settlement construction in the E1 area is "unacceptable and a violation of international law."
"We condemn this decision and call for its immediate reversal in the strongest terms," the statement reads.
The ministers said Smotrich's claim that the plan will make a two-state solution impossible, by dividing any Palestinian state and restricting Palestinian access to Jerusalem, brings "no benefits to the Israeli people".
"Instead, it risks undermining security and fuels further violence and instability, taking us further away from peace."
The ministers said the government of Israel still has an opportunity to stop the plan from going any further, and encouraged it to "urgently retract" the decision.
"Unilateral action by the Israeli government undermines our collective desire for security and prosperity in the Middle East," they said.
"The Israeli government must stop settlement construction in line with UNSC Resolution 2334 and remove their restrictions on the finances of the Palestinian Authority."
What is the E1 settlement plan?
The plan seeks to build around 3,400 homes on the ultra-sensitive tract of land, which lies between Jerusalem and the Israeli settlement of Maale Adumim.
Development in E1 has been under consideration for more than two decades, but was frozen due to pressure from the United States during previous administrations.
All of Israel's settlements in the West Bank, occupied since 1967, are considered illegal under international law, regardless of whether they have Israeli planning permission.
The Palestinian Authority has criticised the decision, along with the United Nations.
Philippe Lazzarini, the head of the UN agency for Palestinian refugees, said the project would "completely cut off the northern and central West Bank from the southern West Bank — meaning that there would no longer be any territorial contiguity".
'Immediate independent foreign media access'
Overnight, Australia also joined 26 other countries in signing a statement demanding Israel allow international journalists access to Gaza and for the protection of journalists in the enclave.
The UK, New Zealand, France, Italy and Ukraine are among the other countries to have signed the joint statement.
"In light of the unfolding humanitarian catastrophe in Gaza we, the undersigned members of the Media Freedom Coalition, urge Israel to allow immediate independent foreign media access and afford protection for journalists operating in Gaza," they said.
"Journalists and media workers play an essential role in putting the spotlight on the devastating reality of war. Access to conflict zones is vital to carrying out this role effectively. We oppose all attempts to restrict press freedom and block entry to journalists during conflicts."
— With additional reporting by Agence France-Presse