LONDON - British Foreign Secretary David Lammy on Thursday called on Israel to halt its settlement construction plan in the West Bank, warning that the move would constitute a "flagrant breach of international law" and severely undermine prospects for a two-state solution.

"The UK strongly opposes the Israeli government's E1 settlement plans, which would divide a future Palestinian state in two," Lammy said, adding that "the plans must be stopped now."

His remarks followed the unveiling of plans by Israeli Finance Minister Bezalel Smotrich to construct around 3,500 housing units in the West Bank's E1 area. Smotrich declared the project would "bury" the idea of Palestinian statehood.

The E1 area, a stretch of land east of Jerusalem between the city and the settlement of Ma'ale Adumim, is regarded as especially contentious because construction there would effectively cut off East Jerusalem from the northern West Bank. Plans for building in the area have been frozen for years, largely due to international opposition.

Lammy, alongside Canadian Foreign Minister Anita Anand and French Minister for Europe and Foreign Affairs Jean-Noel Barrot, also discussed the need for "an immediate ceasefire, release of all hostages, a flood of aid and a plan to deliver lasting peace" in Gaza.

The announcement also came as Britain, among several other countries, signals its readiness to formally recognize a Palestinian state in September unless Israel meets key conditions, such as agreeing to a ceasefire in Gaza.

"The situation in Gaza is appalling," Lammy said in a post on social media on Thursday, warning that Israel's actions are further jeopardizing the two-state solution.