Israeli President Reuven Rivlin said last week that he opposes the Regulation Law, wrote left-wing Haaretz newspaper.
The Regulation Law was passed by the Knesset last Monday.
The Regulation Law legalizes and protects thousands of Jewish homes in Judea and Samaria which were built in the past with government backing and were not subject to absentee land claims at the time, but against which there are now third-party property claims. It allows for 125% compensation or alternate land to be offered claimants who prove ownership.
According to the report, Rivlin met last week with politicians and told them he feared passing and implementing the law would cause Israel to be seen as an "apartheid state."
"Israel adopted international law, which does not allow a country to apply its laws to land which is not under its sovereignty," Rivlin explained. "If a country does such a thing, it becomes a legal cacophony. It will cause Israel to be seen as an apartheid state - which Israel is not.
"There is no question here. Israel is absolutely forbidden to apply the Regulation Law to lands not under its sovereignty."
Rivlin also said he opposes the right's attempt to remove the Supreme Court's ability to cancel laws, including the Regulation Law.
Currently, the Supreme Court uses its power to cancel any laws it does not like by calling them "unconstitutional." The Supreme Court was never given authority to cancel laws - in fact, the law upon which it bases its "right" was passed with a caveat that "this law is not intended to grant the Supreme Court authority to pass laws" - but anyone who opposes the Supreme Court's decisions is deemed to be "fighting against democracy" and "overly politicized."