The United Arab Emirates (UAE) and Israel are to establish diplomatic ties in a deal halting the planned annexation of occupied land sought by the Palestinians.

US President Donald Trump announced the deal on Thursday after successfully getting Israeli Prime Minister Benjamin Netanyahu and Abu Dhabi Crown Prince Mohammed bin Zayed al Nahyan to agree normalising relations between their two countries.

The deal, to be signed in the coming weeks, will see Israel backing down from "unilateral annexation" of areas of the occupied West Bank - land sought by the Palestinians for their future state, Israeli foreign minister Gabi Ashkenazi said.

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