Defense officials say Israel has expropriated a large stretch of land in the West Bank, near the city of Jericho, just days after Vice President Joe Biden visited the region.
The move, which was reported in Israeli media earlier, has already drawn a sharp U.S. rebuke.
COGAT, a defense body, said Wednesday that about 580 acres (235 hectares) were seized. The decision was enacted on Sunday.
U.S. State Department spokesman John Kirby said Tuesday that Israeli land expropriations accelerate settlement expansion and are "fundamentally undermining the prospects for a two-state solution" to the Israeli-Palestinian conflict.
A visit by Biden in 2010 was marked by a diplomatic spat with Washington after Israel announced settlement construction plans during his visit. His last visit was a week ago.