The Israeli cabinet on Sunday approved the construction of a new settlement near the border with the Gaza Strip, according to Israeli Channel 12.
Ahead of the cabinet meeting, Prime Minister Benjamin Netanyahu said the government will approve the building of a new settlement near Gaza.
"This is a great news for Israel, this is great news for the communities in the Gaza border area," Netanyahu said.
Israeli daily Yediot Ahronoth reported that the new settlement will house around 500 families and it will be named as "Hanun".
The Israeli government said it will allocate one million NIS ($ 296,000) for the development of the infrastructure in the new settlement, which will be within the area of Israel's Sdot Negev Regional Council.
There was no comment from the Palestinian authorities on the report.
The West Bank, including East Jerusalem, is regarded as occupied territory under international law, thus making all Jewish settlements there illegal.