They have also raised the possibility of mass demonstrations, encouraging international sanctions against Israel and ending the security co-ordination with the Israeli military that has kept the West Bank largely quiet since the end of the Palestinian intifada in 2005.
The warning is a counterattack against a flurry of announcements from Mr Netanyahu's government that it intends to build new settlements consisting of more than 6,000 homes in east Jerusalem and the West Bank on land the Palestinians want as part of a future state.
The US, the European Union and the United Nations have condemned Israel's plans as harmful to prospects for a two-state solution.
Source: The Telegraph. Read full article. (link)