The European Union called on Israel to reverse its decision to legalize three settler outposts in the West Bank, occupied Palestinian territory.

"I am extremely concerned about the decision of the Israeli authorities regarding the status of the settlements of Sansana, Rechelim and Bruchin in the occupied Palestinian territory. I call upon them to reverse this decision," EU foreign policy chief Catherine Ashton said in a statement.

The EU statement followed one from the United Nations Secretary-General Ban Ki-moon on Tuesday saying he was “deeply troubled” by Israel's announcement that it has legalized the three settlements in the West Bank.

"The secretary-general reiterates that all settlement activity is illegal under international law," said the statement. "It runs contrary to Israel's obligations under the roadmap and repeated Quartet calls for the parties to refrain from provocations."

Germany's Foreign Minister Guido Westerwelle also criticised the Israeli move, saying Berlin had "pushed in talks with the Israeli side over the past days for this not to happen."

"I'm very worried about the plan to legalise Israeli settlements in the West Bank," said Westerwelle.

Israeli officials played down the decision taken by a ministerial committee late on Monday, rejecting accusations that the government had effectively created the first new Jewish settlements for more than 20 years.

jm/mz (AFP, Reuters)