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Prior to the vote, Israeli Prime Minister Benjamin Netanyahu said the decision to change the status of the outpost would "facilitate orderly life there".

Havat Gilad is made up of lands privately owned by Jews, undeveloped lands that belong to the state and undefined land in the West Bank area which Israel captured in the 1967 Six-Day War.

On January 9 this year, the Rabbi of Havat Gilad, Raziel Shevach, was shot by a squad of terrorists in his vehicle going home, a heinous crime which a unified front of rightwing politicians and activists, led by Defense Minister Avigdor Liberman, have stated must be avenged the Zionist way - by awarding Havat Gilad a permanent status.

Netanyahu told the Cabinet he had spoken with Yael Shevach, the widow of the murdered rabbi.

Israel agreed Sunday to recognize a previously unauthorized West Bank outpost as an official settlement following the killing of one of its residents last month.

Tamimi, who turned 17 in prison last week, was charged with assault and incitement after she slapped and punched two Israeli soldiers in her West Bank village in December. To those who sanctify death, we will sanctify life.

Israeli settlements are seen as illegal under worldwide law and a major obstacle to peace as they are built on land the Palestinians see as part of their future state. "This is the essence of the government's policy", Netanyahu said at the meeting.

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Both settlements and outposts are considered illegal under worldwide law.

Furthermore, none of the buildings in the outpost, including those situated on Israeli-owned land, are legal, and all have outstanding demolition orders against them because they were built without a zoning or planning process and without the approval of local government bodies.

Israeli media also quoted Palestinian media as saying that several of the youths were injured in subsequent clashes, adding that the IDF had placed a curfew on the village.

Havat Gilad (Hebrew: Gilad Farm) is an Israeli community in Samaria which is outside the jurisdiction of Shomron Regional Council.

The organization referred to the move as a "cynical exploitation of an abominable murder".

Approval by the cabinet, it said, "would set a precedent of legalizing an outpost on private Palestinian land, once considered unthinkable".