Israel's Prime Minister Benjamin Netanyahu said ministers would grant formal authorisation to a rogue West Bank settlement in response to the murder last month of a rabbi who lived there.
"The government will today regularise the status of Havat Gilad to allow the continuance of normal life there," he said at the start of the weekly cabinet meeting, referring to the wildcat settlement in the occupied West Bank.
The rabbi was killed in a drive-by shooting on 9 January.
The official cabinet agenda says ministers will hear a motion to designate the 15-year-old outpost as a "new community" which will have the necessary building permits and a state budget.
Some 50 families live in the outpost.
Rabbi Raziel Shevah was shot dead near Havat Gilad, where he lived.
Meanwhile, Palestianian officials said a teenager was shot dead during an arrest raid in the village of Burqin.
Witnesses reported around 200 Palestinians were throwing stones at Israeli military vehicles when a gunshot was heard.
Israel's military said its forces had been searching in Burqin for suspects involved in last month's shooting.
A military spokeswoman said rioting had broken out while troops were apprehending several suspects connected with that shooting and troops responded with non-fatal "riot dispersal means" against Palestinians throwing rocks and firebombs and then with live gunfire.
The Palestinian Health Ministry said the teenager killed was 19.
The Israeli military spokeswoman said he had climbed onto a military vehicle and had opened its door before he was shot.
Israeli forces in the adjacent city of Jenin last month shot and killed a Palestinian gunman whom they had also suspected of involvement in the rabbi's shooting.
Tensions in the region have risen since US President Donald Trump recognised Jerusalem as Israel's capital in December.
Since then at least 20 Palestinians and one Israeli have been killed.
Mr Trump's reversal of decades of US policy angered Palestinians, who want to create an independent state in East Jerusalem, the West Bank and Gaza.
Israel captured those territories in the 1967 Middle East War and annexed East Jerusalem in a move not recognised internationally.
It says the entire city is its eternal, indivisible capital. It pulled out of Gaza in 2005.
US-led peace talks between Israel and the Palestinians broke down in 2014. A bid by the Trump administration to restart negotiations has shown no real signs of progress.
