The British and French governments have summoned the Israeli ambassadors to their countries, after Israel said it would build 3,000 more settlements in Palestinian territory.
The BBC quoted a spokesman for the Foreign and Commonwealth Office (FCO) as saying:
"We have called on the Israeli government to reconsider. We have told the Israeli government that if they go ahead with their decision, then there will be a strong reaction."
The FCO said in a statement:
“We deplore the recent Israeli government decision to build 3,000 new housing units and unfreeze development in the E1 block. This threatens the viability of the two state solution.
“Any decision about any other measures the UK might take will depend on the outcome of our discussions with the Israeli government and with international partners including the US and European Union.”
A German government spokesman said:
"Israel is undermining faith in its willingness to negotiate and the geographic space for a future Palestinian state, which must be the basis for a two-state solution, is disappearing."
Russia and Sweden also criticised Israel’s decision.
The UN also warned Israel not to go ahead with the move.
"It would represent an almost fatal blow to remaining chances of securing a two-state solution," Secretary General Ban Ki-moon said.