US President Donald Trump’s controversial “deal of the century” is expected to include recognition of Israeli law extending to all settlements in the occupied West Bank, Israel’s Chanel 12 News says.

Trump’s so-called peace plan will provide for all illegal Israeli settlements to “remain in Israeli hands under a permanent accord” and “the Americans will not oppose Israeli steps relating to the settlements,” it said. 

The report said while the US will not explicitly back the formal “extension of Israeli sovereignty” to the settlements or their annexation, it will not object to the “extension of Israeli law” to the settlements.

In the run-up to last month’s elections, Israeli Prime Minister Benjamin Netanyahu promised to extend "sovereignty" to West Bank settlements and hoped he would be able to do so with American support. 

Chanel 12 News said if Tel Aviv extends Israeli law to all the settlements, the US “won’t oppose, or will be okay with, or won’t make a fuss about” such a move.

The White House has declined to comment on the matter.

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Trump’s so-called peace plan has been dismissed by Palestinian authorities ahead of its unveiling at the end of the holy fasting month of Ramadan and the formation of the new Israeli cabinet, most likely in June.

Speaking in the occupied West Bank city of Ramallah last month, Palestinian Prime Minister Mohammad Shtayyeh lashed out at Trump’s initiative, asserting that it was “born dead.”

Shtayyeh noted that negotiations with the US were useless in the wake of the country’s relocation of its embassy from Tel Aviv to Jerusalem al-Quds, which Palestinians consider the capital of their future state.

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Israel occupied the West Bank as well as East Jerusalem al-Quds during the Six-Day War in 1967. It later annexed the Palestinian city in a move not recognized by the international community.

About 600,000 Israelis live in over 230 illegal settlements built since the 1967 Israeli occupation of the Palestinian territories of the West Bank and East Jerusalem al-Quds.

Palestinians want the West Bank as part of a future independent Palestinian state with East Jerusalem al-Quds as its capital.

In a highly provocative move on March 25, the US president signed a proclamation recognizing Israel�s "sovereignty" over Syria�s Golan Heights.  

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Last year, Trump recognized Jerusalem al-Quds as the so-called capital of the Israeli regime. The US later relocated its embassy from Tel Aviv to the city.