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Israeli PM Benjamin Netanyahu has defied opposition from Justice Minister Tzipi Livni to press forward with legislation declaring Israel "the nation-state of the Jewish people."
The Bill has enraged the 20 per cent of Israel's population who are ethnic Arabs, with Arab Israeli MPs slamming it in parliament as blatant racism.
It has also infuriated resistance forces in occupied Palestine, who fight Israel's policy of colonising their territory.
Ms Livni said the Bill would enshrine Israel's "Jewishness" above its paper commitment to democracy and blocked its progress in a Cabinet committee she chairs, but Mr Netanyahu retaliated by saying the issue would now be taken away from that committee.
The minister heads the Hatnuah party, which claims to seek progress via peace talks with Palestine.
Far-right Cabinet colleague Naftali Bennett said in future that he would veto all legislation proposed by "centrist" ministers.
