Israel's far-right finance minister Bezalel Smotrich pledged on Monday to annex Israeli settlements in the occupied West Bank in 2025, calling the return of Donald Trump to power in the United States "an important opportunity."

"The year 2025 will be, with God's help, the year of sovereignty in Judea and Samaria," he said, referring to the occupied Palestinian territory.

Israel has occupied the West Bank since 1967. Palestinians claim the territory as part of a future independent state, and have repeatedly warned that Israeli settlements there are an obstacle to peace.

Smotrich, whose ministerial portfolio also includes some areas of the defense ministry's work, said he had ordered preparations for "applying sovereignty" over Israeli settlements.

Speaking at a meeting in parliament, he said he had "instructed the director of settlement affairs in the defense ministry and the Civil Administration... to prepare the necessary infrastructure for applying sovereignty."

Smotrich congratulated U.S. President-elect Donald Trump on his "incredible and sweeping victory", which the far-right politician said "also brings an important opportunity for the State of Israel."

"During his first term, President Trump led dramatic moves," Smotrich said.

These included recognizing Israel's sovereignty over the occupied Golan Heights, breaking with much of the international community by moving the U.S. embassy to Jerusalem, and brokering a set of normalization deals between Israel and several Arab countries.

Before the normalization agreements, dubbed the Abraham Accords, the Israeli government had said it would annex large Israeli settlement blocs in the West Bank, before scrapping the plan as the deals were announced.

"We were on the verge of applying sovereignty over the settlements in Judea and Samaria," Smotrich said.

"Now it is time to do it."

He said he would push the government to work together with the new U.S. administration on the matter.

Earlier on Monday, Israel's newly appointed Foreign Minister Gideon Saar said Palestinian statehood was not "realistic," after Palestinian president Mahmud Abbas reiterated his demand for a "sovereign" country.

"I don't think this position is realistic today and we must be realistic," Saar told reporters.

The Palestinian foreign ministry condemned Saar's remarks as an "extension of the war of extermination and displacement against our people."

It also said the comments were in "disregard for international legitimacy... and the international consensus on the two-state solution" to the Israeli-Palestinian conflict.

Excluding East Jerusalem, the West Bank is home to three million Palestinians alongside around 500,000 Israelis living in settlement that are illegal under international law.