The Palestinian leadership on Tuesday slammed the Israeli government's approval of a law determining the country's status as the national Jewish homeland, saying it "killed" Middle East peace prospects.

The Palestine Liberation Organisation's executive committee expressed in a statement its "strong condemnation and rejection of this law".

"The law aims to kill the two-state solution by imposing the project of a 'greater Israel' as well as the Jewishness of the state upon the historical land of Palestine," said the PLO, which dominates the Palestinian Authority.

Israel's cabinet on Sunday endorsed a proposal to anchor in law the country's status as "the national state of the Jewish people," voting 14 to six in favor of the initiative.