The European Commission has described the introduction of the death penalty in Israel targeting Palestinians as a "clear step back" and a "clear negative trend" in terms of Israel's obligations on human rights, calling the move discriminatory in nature.
Israel's parliament passed a law making the death penalty a default sentence for Palestinians convicted in military court of lethal attacks.
Sixty-two politicians, including Prime Minister Benjamin Netanyahu, voted in favour and 48 against the bill, championed by far-right National Security Minister Itamar Ben-Gvir.
There was one abstention and the rest of the members were not present.
Spokesperson Anouar El Anouni said: "The approval of the deal in Israel is very concerning to us in the EU. This is a clear step backwards."
He called on Israel to "abide by its previously principled position, its obligation under international law and its commitment to democratic principles."
Read More: Israel passes death penalty law for Palestinians convicted of carrying out lethal attacks
The commission had expressed its opposition to the move "loud and clear" and the EU had communicated its concerns both at the highest level and through the bloc’s delegation in Tel Aviv, he said.
However, Mr Anouni declined to say if the European Commission would push to raise the issue in the context of the EU-Israel Association Agreement.
He told reporters: "Diplomatic engagement has taken place, is taking place and will continue to take place.
"This is part of our broader engagement, and this is what we do with our regular partners when we don't see developments eye-to-eye, and we're not on the same page in terms of different actions that are taken on both sides.
"It’s not for me here at this stage today, to be pre-judging … or to speculate, in terms of the next steps that could be actually taken."
