Israel has approved the establishment of its first new Jewish settlement in the occupied West Bank in two decades, BBC News reports.

The security cabinet voted unanimously late on Thursday, Mach 30 to begin construction on a hilltop known as "Geulat Zion", near the Palestinian city of Nablus.

It will be used to house some 40 families whose homes were cleared from an unauthorised settlement outpost.

Palestinian officials have condemned the move and called on the international community to intervene.

It comes despite US President Donald Trump asking Israeli Prime Minister Benjamin Netanyahu last month to "hold back" on settlement construction.

The Israeli authorities approved thousands of new homes in existing settlements after Trump took office in January.