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Israel's far-right cabinet is preparing to vote on a contentious resolution on Sunday that could potentially legalise racial discrimination against Palestinians and Israel's non-Jewish population.

The proposal, presented by extreme-right Minister of National Security Itamar Ben-Gvir aims to establish Zionist principles as the guiding values in Israeli governmental policies.

The draft text, as reported by Israeli media, also emphasises Israel as the nation-state of the Jewish people and their right to self-determination, including settlements, security, and culture.

The resolution places Zionist values above other fundamental laws, such as democracy and equality.

Although the official text of the proposal has not been released, some details were relayed by Israeli media.

According to the Times of Israel, one article in the proposed law declares the development of Jewish settlements as a national value, encouraging and promoting settlement activity.

Another clause downgrades the status of the Arabic language from official to "special," without further explanation.

The proposal also designates Jerusalem as the capital of Israel, adopts the Hebrew calendar as the official state calendar, and recognises Jewish holidays.

The proposal faced criticism for undermining the democratic character of the state and the principle of minority equality in rights.

It has been condemned for openly favouring Jewish settlements in the occupied West Bank, which are considered illegal under international law.

Israeli newspaper Haaretz described the bill as an official endorsement of apartheid policies, noting that it would not only intensify racial discrimination against Palestinians in Israel but also upset the Druze community, whose members serve in the Israeli army and view the law's provisions as relegating them to second-class citizenship.

If approved, the proposal is expected to encounter legal challenges.