Jerusalem is weighing the annexation of the major settlement blocs if Palestinians seek unilateral recognition of statehood, an official in Jerusalem told AP on Tuesday.

The official said that "adopting unilateral measures is not a one-way street," and that it was not the only option being considered, according to the report. He cautioned, however, that he was not aware of how seriously the political leadership was considering such a bold move.

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Other responses to Palestinian unilateralism could include reducing water access below agreed upon levels, as well as restricting the use of Israeli ports for Palestinian imports and exports, AP reported.

The Prime Minister's Office said that it had not heard of the plan, Israel Radio reported.

Officials in Ramallah close to Palestinian Authority President Mahmoud Abbas said that "these threats are not new ... But we are continuing [our campaign] and are convinced our position is right," according to the report.