MAALE ADUMIM, West Bank — Israel’s far-right finance minister announced a contentious new settlement construction in the Israeli-occupied West Bank on Thursday that Palestinians and rights groups worry will scuttle plans for a future Palestinian state by effectively cutting the West Bank into two separate parts.

The announcement comes as many countries said they would recognize a Palestinian state in September.

“This reality finally buries the idea of a Palestinian state, because there is nothing to recognize and no one to recognize,” said Finance Minister Bezalel Smotrich. “Anyone in the world who tries today to recognize a Palestinian state — will receive an answer from us on the ground,” he said.

Development in E1, an open tract of land east of Jerusalem, has been under consideration for more than two decades, but was frozen due to U.S. pressure during previous administrations. On Thursday, Smotrich praised President Trump and U.S. Ambassador to Israel Mike Huckabee as “true friends of Israel as we have never had before.”

The E1 plan has not yet received its final approval, which is expected next week. The plan includes around 3,500 apartments to expand the settlement of Maale Adumim, Smotrich said. While some bureaucratic steps remain, if the process moves quickly, infrastructure work could begin in the next few months and construction of homes could start in around a year.

Rights groups swiftly condemned the plan. Peace Now called it “deadly for the future of Israel and for any chance of achieving a peaceful two-state solution” which is “guaranteeing many more years of bloodshed.”

The announcement comes as the Palestinian Authority and Arab countries condemned Israeli Prime Minister Benjamin Netanyahu’s statement in an interview on Tuesday that he was “very” attached to the vision of a Greater Israel. He did not elaborate, but supporters of the idea believe that Israel should control not only the occupied West Bank but parts of Arab countries.