LONDON — The UN's top court has said Israel's occupation of Palestinian territories is against international law, in a landmark opinion.

The International Court of Justice (ICJ) said Israel should stop settlement activity in the occupied West Bank and East Jerusalem and end its "illegal" occupation of those areas and the Gaza Strip as soon as possible.

In response, Israeli Prime Minister Benjamin Netanyahu said the court had made a "decision of lies".

The court's advisory opinion is not legally binding but still carries significant political weight. It marks the first time the ICJ has delivered a position on the legality of the 57-year occupation.

The ICJ, based at The Hague in the Netherlands, has been examining the issue since the beginning of last year, at the request of the UN General Assembly.

The court was specifically asked to give its view on Israel's policies and practices towards the Palestinians and on the legal status of the occupation.

Delivering the court's findings, ICJ President Nawaf Salam said it had found that "Israel's... continued presence in the Occupied Palestinian Territory is illegal."

"The State of Israel is under the obligation to bring an end to its unlawful presence in the Occupied Palestinian Territory as rapidly as possible," he said.

The court also said Israel should evacuate all of its settlers and pay reparations to Palestinians for damages caused by the occupation.

Israel has built about 160 settlements housing some 700,000 Jews in the West Bank and East Jerusalem since 1967. The court said the settlements were illegal. Israel has consistently disputed that they are against international law.

Israel also claims sovereignty over the whole of Jerusalem, which it considers its indivisible capital - something which is not accepted by the vast majority of the international community.

Israel's prime minister issued a blunt statement rejecting what the court had said.

"The Jewish people are not occupiers in their own land -- not in our eternal capital Jerusalem, nor in our ancestral heritage of Judea and Samaria" (the West Bank), Netanyahu said in a statement.

"No decision of lies in The Hague will distort this historical truth, and similarly, the legality of Israeli settlements in all parts of our homeland cannot be disputed." — BBC