Israel has laid claim to nearly a thousand acres of land in the West Bank, in defiance of a Palestinian demand for a halt on settlements.

Israeli officials said the take-over was in response to the killing of three Jewish teenagers in June in the area in question.

The deaths of the teens sparked the 50-day conflict that ended last week with an Egyptian-brokered ceasefire.

However, the largest land grab in 30 years is causing fresh tensions, with Israeli group Peace Now saying it would dramatically change the reality for those living in the area.

The group said the declaration showed that Prime Minister Netanyahu does not "aspire for a new Diplomatic Horizon".