It is by no means certain that Netanyahu will be indicted. The police can only make recommendations that the country’s attorney general must eventually decide on.
Nabil Abu Rdainah, a spokesman for Palestinian President Mahmoud Abbas, said any annexation would “destroy all efforts to try and save the peace process”.
Netanyahu’s public comments appeared to reflect a desire to show support for a major ally, but also concern that choking off funds would deepen Palestinian hardship and could put Israel and militants on a course for war.
Transport minister Yisrael Katz said on Wednesday he had chosen a proposed subway stop near the Western Wall in Jerusalem’s Old City – right in the middle of the area that the Palestinians want as their own future capital.
The legislation still has to go through further drafting by the justice ministry and pass several votes in parliament in what could be a lengthy process.
Israel’s president has apologised for a tweet in which Israel’s prime minister seems to be praising Trump’s plans to build a wall on the US-Mexico border.
The Bill has been condemned by Palestinians as a blow to their hopes of statehood but its passage may be symbolic as it contravenes Supreme Court rulings on property rights
The Jerusalem municipality is due to act on requests to construct hundreds of new homes for Israelis in areas that Israel captured in 1967 and annexed to the city.
Benjamin Netanyahu has been unrelenting in his criticism of Obama over what he condemned as its “shameful” decision not to veto a UNSC resolution on Israeli settlements.