Israel’s government on Sunday approved the launch of a land registration process in the occupied West Bank, describing it as a legal measure to regulate property rights, while the Palestinian presidency condemned it as a step toward annexation.

The cabinet endorsed a proposal submitted by three ministers that includes registering large areas of land in the West Bank as “state land.”

Under the decision, Israel’s Land Registration and Settlement of Rights Authority within the Justice Ministry will be tasked with implementing the process on the ground, with a dedicated budget allocated for the effort.

The Palestinian presidency rejected the move, saying in a statement that it poses a threat to security and stability and amounts to a “de facto annexation” of occupied Palestinian land, adding that it undermines previously signed agreements.

There was no further immediate comment from Israeli officials on the Palestinian statement.