The Israeli government has offered to buy land in the West Bank and in East Jerusalem for Palestinian residents of the territories, Israeli media reported Thursday.
The announcement comes days after Prime Minister Benjamin Netanyahu announced he would make Israel a “full partner” in peace efforts.
The news comes as the United States and several other countries have called on the Netanyahu government to immediately grant Palestinian statehood.
The U.S. and other countries want a Palestinian state to be recognized by the international community, and Israel, like most other nations, has no plans to do so.
The offer to buy the land comes as tensions between the Israeli government and Palestinian leaders have escalated over a number of recent days.
Netanyahu said earlier this week that the Palestinian Authority (PA) and Hamas were “playing with fire” by trying to destabilize the peace process, adding that Israel was ready to use its economic clout to secure its future.
The Israeli announcement comes a day after the Palestinian presidency called for a Palestinian unity government and the formation of a new unity government with Hamas, the Islamic militant group.
Netanyahu has said the PA will not recognize a unity government formed by Hamas, which controls the Gaza Strip and has been designated a terrorist organization by the United Nations.
Hamas and other Palestinian factions have criticized the PA’s refusal to recognize a new government, arguing that it would undermine efforts to secure peace.
Netanyahu, who is a member of the ruling coalition, is seeking to maintain a majority in the Knesset, or parliament, by holding a second vote on a peace deal this year.
The next Knessett vote is expected to be held in November.
In his speech Wednesday, Netanyahu also promised that he would “use all of the powers available to us to secure our future,” including the right to pursue peace negotiations.
“As prime minister of Israel, I can assure you that I will not accept a Palestinian government that does not recognize the existence of the State of Israel,” he said.
“And I am committed to working with my American partners and partners around the world to make that happen.
I will use all of my power to secure the future of the state of Israel.”
Netanyahu’s remarks came a day before the United Arab Emirates (UAE) held a meeting in Dubai with several top Palestinians and foreign ministers.
UAE foreign minister Ahmed al-Jubeir, a longtime ally of Netanyahu, was among those who addressed the UAE delegation.
The UAE is one of the largest oil exporters in the Middle East.
The Saudi-led coalition that controls the Palestinian territories and is in charge of the West, is also seeking to resolve the Israeli-Palestinian conflict through negotiations.
In recent months, the United Kingdom and France have urged the U.N. Security Council to consider a resolution that would recognize a Palestinian “state” and create an independent Palestinian administration in the territories.