TEL AVIV (Sputnik) — The new settlement will be created in the Shilo river valley, according to the office.
"The security cabinet led by Prime Minister Benjamin Netanyahu unanimously approved tonight the creation of a new settlement," the statement read.
Homes would be constructed for former residents of the Amona outpost that Israel's Supreme Court ordered to tear down in February, saying it was built illegally on privately-owned Palestinian land.
Netanyahu first spoke of his intention to restart settlement construction in the West Bank last December when the UN Security Council passed a resolution condemning what it deems Israel's illegal settlement activity.