Israel says it plans to take over 400 hectares of land in the West Bank in response to the killing of three Jewish teens in the area in June.

The death of the teenagers was among the triggers for the recent seven week conflict in which thousands of Palestinians and 70 Israelis died.

Palestine says diplomatic action should be taken against Israel, and the US urged the country to reverse the plans.

The settlements are considered illegal in international law.

Palestinian and Israeli leaders last week agreed an Egyptian-brokered ceasefire following seven weeks of fighting. More than 2,000 Palestinians and 70 Israelis were killed in the conflict in Gaza.

Further talks aimed at securing a permanent peace deal will take place in Cairo next month.

Middle East correspondent with the London Independent, Robert Fisk, told the Pat Kenny Show here on Newstalk it is the first time that 'punishment' has been used as the justification for such a plan.