A newly signed agreement between the government and the Mateh Binyamin Regional Council in the West Bank could pave the way for what critics and supporters alike describe as the first effective expansion of Yerushalayim beyond its post-1967 boundaries, pending final approvals, Times of Israel reports.

The project, unveiled earlier this month, is formally defined as a westward extension of the Adam settlement, located near Yerushalayim’s northeastern edge. The blueprint calls for approximately 2,780 housing units to be constructed as a new “neighborhood” of Adam.

Despite that designation, the proposed site is geographically detached from Adam itself. Route 437, a major roadway, separates the two areas, as does the security barrier, creating a physical divide between the existing community and the planned development.

By contrast, the new neighborhood would share closer territorial continuity with Neve Yaakov, an East Yerushalayim neighborhood situated within the city’s municipal borders, than with Adam.

Although the project would not officially fall under Yerushalayim’s municipal jurisdiction and would remain administratively tied to Adam, officials from the Peace Now organization contend that the development would likely receive at least some municipal services from Yerushalayim.

The construction is slated for 500 dunams of land positioned between the Palestinian towns of Hizma and Al-Ram. The government is expected to allocate roughly NIS 120 million ($39 million) for infrastructure, public facilities, and communal institutions necessary for the neighborhood’s establishment.

The proposal has not yet been submitted to the Civil Administration’s Higher Planning Committee, meaning that final authorization could still take up to two years. Nonetheless, the Housing Ministry confirmed that 500 housing units have already been marketed as part of the initial construction phase.

“The agreement constitutes a significant step in continuing the development of the settlement and strengthening the settlement continuity in the area, while providing a response to the demand for housing in and around Yerushalayim, and integrating a phased and balanced planning of new neighborhoods alongside the existing fabric,” the Housing and Construction Ministry said in a statement on February 3 announcing the development.

Peace Now, which opposes settlement expansion, argued that the plan amounts to de facto annexation and represents an unprecedented enlargement of Yerushalayim’s footprint.

After Israel captured East Jerusalem and the West Bank during the 1967 Six Day War, the Knesset and relevant ministries formally redrew the capital’s boundaries to include formerly Jordanian-held East Jerusalem. Since then, neighborhoods built by Israel in East Jerusalem — widely viewed internationally as settlements — have been developed within those expanded municipal lines.

“This is the first time since 1967 that Yerushalayim has been expanded into the West Bank,” asserted Peace Now.

“Under the pretext of a new settlement, the government is carrying out a backdoor annexation here. The new settlement will function for all intents and purposes as a neighborhood of the city of Yerushalayim, and its planning as a ‘neighborhood’ of the Adam settlement is just an excuse and an attempt to conceal the move, the implication of which is the application of Israeli sovereignty to territories in the West Bank,” it said.

MK Gilad Kariv of the Democrats party also criticized the initiative, calling it “another unprecedented act of annexation that draws us closer to an explosion in the West Bank.”

Kariv said he had contacted Housing and Construction Minister Chaim Katz regarding “the plan to expand Yerushalayim over the Green Line and to de facto annex territory,” warning, “Annexation will bring about a security catastrophe.”

In contrast, Mateh Binyamin Regional Council chairman Yisroel Ganz welcomed the agreement, characterizing it as “the realization of the settlement vision” for the area.

“The new plan will allow us to build thousands of housing units, while at the same time dramatically upgrading the quality of life of the residents,” said Ganz, adding that his council is “already working on additional agreements” that will “herald dramatic change on the ground.”