UK Foreign Secretary Ed Miliband has issued a rebuke to Israel after it published a tender for construction of a settlement in the occupied West Bank, calling it an "unacceptable and destructive act."

He said the United Kingdom would not "stand back and accept the destruction of the two-state solution", as he pledged to set out measures in response to Israeli policies in the coming weeks.

Miliband said the UK had been clear publicly and privately about its opposition to the E1 settlement project, which he said risks endangering a two-state solution by separating the West Bank from East Jerusalem.

"I made clear to the Israeli Foreign Minister Gideon Sa'ar that the Israeli government must halt E1 plans immediately, retract the tender and stop all settlement expansion," the foreign secretary said.

The Foreign Office also summoned Israel's charge d'affaires to set out the UK's "profound objection to this move."

Miliband said: "This Israeli government's publication of a tender for the E1 settlement project is an unacceptable and destructive act.

"E1 would cut across the heart of Palestine and risks separating the West Bank from East Jerusalem, which would endanger the viability of a two-state solution.

"The UK has been clear privately and publicly in our opposition to E1 and our support for a two-state solution as the only way to ensure long-term security and peace for both Palestinians and Israelis.

"All settlements damage that prospect and are a flagrant breach of international law."

Miliband said the expansion of settlements and "attempts to create irreversible divisions" on the ground threatens peace and prospects for a Palestinian state.

"Britain will not stand back and accept the destruction of the two-state solution.

"In the coming weeks we will set out a comprehensive set of measures to respond to Israeli government policies, protect the viability of the Palestinian state, target sanctions at those who participate in illegal settlement expansion and support a just and lasting peace for Israelis and Palestinians."

Sa'ar accused the UK foreign secretary of being "entirely one-sided" and said he rejected his statement and "the patronizing tone of his words."

In comments on X, he wrote: "It is absurd for Britain to lecture the Jewish people about where they may live in their historic tiny homeland, when the Jewish people's connection and right to this land is the most extensively documented of any people in human history.

"There have been no new decisions regarding development in E1. The decision was made on 2025.

"The tender process has been under way for several months, with certain tender documents published only in recent days."

He said the UK's policy of "blaming only Israel while ignoring Palestinian extremism" has contributed to antisemitic hatred and attacks against the British Jewish community.

Sa'ar added: "The UK Government's decision to damage the relationship between our countries is deeply unfortunate.

"But Israel will not be a passive victim of this policy.

"Israel will defend its rights, its interests and its people."

Later on Thursday, the UK, France, Germany and Italy - known collectively as the E4 - issued a joint statement, urging Israel to "retract" its plans and warning businesses not to bid for construction tenders.

The statement from the E4 countries read: "International law is clear that Israeli settlements in the West Bank are illegal. This is the position of the international community reaffirmed by the United Nations Security Council.

"At a time of grave instability in the West Bank with unprecedented levels of violence by settlers against civilians, and serious restrictions on the Palestinian economy, this decision is even more concerning.

"We urge the Government of Israel to retract these plans immediately and end its expansion of settlements in the West Bank.

"Not only will they take us further from peace, but they further undermine Israel's international standing.

"Businesses should not consider bidding for construction tenders. They should be aware of legal and reputational consequences including the risk of involving themselves in serious breaches of international law."