"The settlements in (Palestinian territory) are illegal and amount to an obstacle for the two-state solution and for a fair and lasting peace," the foreign ministry said in a statement yesterday.
Brazil reiterated its position in favour of the creation of a Palestinian state so that "Israel and Palestine can live in peace and security."
Brazil recognised the Palestinian state in 2010 and recalled its ambassador from Israel in 2014 in protest at "disproportionate" force used by the Jewish state in the Gaza Strip.
The Israeli cabinet gave unanimous backing this month to the first officially sanctioned new settlement in the occupied West Bank in more than 20 years.