Israel ploughs on with settlement plan

Palestinians say Israeli building on the "E1 corridor" would make a future state of their own unviable as it would cut off their capital Jerusalem from the West Bank.

But Mr Netanyahu said the project - widely seen as revenge for Palestine's successful bid for non-member observer status at the United Nations - represented no real policy change as Israel had always intended to keep the areas.

"Most governments which have looked at these proposals over the years understand that these blocs are going to be part of Israel," he said.

The PM's visit to Germany caused further controversy as it emerged he had barred a prominent Israeli academic from attending a joint symposium with German scientists because of her dissident views.

Professor Rivka Feldhay of Tel Aviv University was initially invited to attend the Berlin conference by the Israeli embassy - but on arrival she was informed that she would no longer be allowed.

An Israeli official said it was because Ms Feldhay had "tarnished the name of Israeli soldiers and pilots." The professor signed a petition in 2008 supporting soldiers who refused to serve in the Occupied Territories.