Alleging fraud in Arab voting areas, Netanyahu has been pushing an unsuccessful campaign to place cameras in polling stations on election day. It would essentially slice off the entire eastern edge of the West Bank and mean Jericho is a Palestinian island inside Israel territory.
Saudi Arabia urged the worldwide community to "condemn and reject the declaration and to consider any action resulting from it as void".
The move, if it actually went ahead, would fundamentally redraw Israel's borders and force the worldwide community to ask whether there was any possibly of a Two State Solution to the Israeli-Palestinian conflict. But for the first time, he unveiled a map showing his plan for annexing the Jordan Valley.
The Palestinians seek the West Bank, east Jerusalem and the Gaza Strip - areas captured by Israel in the 1967 Mideast war - for a future independent state.
The proposal was dismissed by opponents as election theatrics, who have accused Netanyahu of trying to divert attention from a corruption scandal and Israel's security challenges.
Netanyahu also repeated his intention to annex other Israeli settlements throughout the West Bank if he is re-elected, although that would only come after consulting with US President Donald Trump who is expected to soon unveil his peace plan for the Israeli-Palestinian conflict.
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"Out of respect to President Trump, I'll wait with the application of sovereignty until after the president presents his plan", Netanyahu said.
Palestinians, however, say there can be no independent state without the area, which comprises almost a quarter of the West Bank. Some 65,000 Palestinians and about 11,000 illegal Israeli settlers live in the area - most of which is under Israeli military control in what is referred to as Area C.
Israeli Prime Minister Benjamin Netanyahu speaks during a press conference in Tel Aviv, Israel, Tuesday, Sept. 10, 2019.
Netanyahu's plan would turn Palestinian population centres into isolated enclaves that he said he would seek to link to neighbouring Jordan.
Ahead of April elections, Trump recognized Israeli sovereignty over the occupied Golan Heights, seized from Syria in the 1967 Six-Day War.
A few days before the April legislative elections, which failed to produce a government, Netanyahu had already promised to annex Jewish settlements in the occupied West Bank. But major policy pronouncements are typically co-ordinated with the White House ahead of time, and a muted White House reaction indicated there would be little resistance.
The changes, however, have all but eliminated the idea of a peaceful agreement between Palestine and Israel.