Israeli Prime Minister Benjamin Netanyahu said Monday he has been discussing legislation with the United States that would effectively annex settlements in the occupied West Bank, a spokesman said.

"Regarding the issue of applying sovereignty, I can tell you that I have for some time been speaking with the Americans about it," Netanyahu told lawmakers from his Likud party, according to comments relayed by a spokesman.

The move would severely harm remaining prospects for a two-state solution to the Israeli-Palestinian conflict.