The Turkish government on Tuesday condemned the newly-passed Regulation Law, as a senior government minister was visiting Israel in the first such trip in seven years.
"We strongly condemn Israeli Parliament's adoption of a law that gives approval to various settlements consisting of 4,000 units built on the private property of the Palestinians," the Turkish Foreign Ministry said in a statement.
The ministry said the "unacceptable" Israeli policy contradicted UN Security Council resolutions and was "destroying the basis for the two-state solution".
The new law, which was passed overnight Monday, will protect Jewish communities built on land registered as state land but lacking formal development plans, leaving them vulnerable to claims of ownership on the land.
Ankara's reaction comes as Tourism Minister Nabi Avci was due to meet with his Israeli counterpart in Tel Aviv -- in the first visit by a top government official from Turkey since the two countries last year patched up ties that were badly damaged over the attempt by a Turkish ship in 2010 to run Israel’s security blockade of the Hamas regime in Gaza.
The rift came to an end in June last year after long-running secret talks in third countries.
AFP contributed to this report