Ottawa, Aug. 21 -- Canada and six European countries condemned Israel's decision to publish construction tenders for the E1 settlement project in the West Bank, warning that the plan could undermine the prospects of a two-state solution.

The leaders said the E1 project could "drive a wedge through the West Bank", damaging the territorial contiguity of the Palestinian territories and making a negotiated two-state solution more difficult.

They also reiterated their position that Israeli settlements in the West Bank are illegal under international law, citing the longstanding position of the international community and the United Nations Security Council.

The seven countries also warned businesses against bidding for the construction tend...