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The Vatican has officially recognized the state of Palestine in a new treaty, immediately sparking Israeli ire and accusations that the move hurt peace prospects.

The treaty, which was finalized Wednesday but still has to be signed, makes clear that the Holy See has switched its diplomatic relations from the Palestine Liberation Organization to the state of Palestine.

The Vatican had welcomed the decision by the U.N. General Assembly in 2012 to recognize a Palestinian state. But the treaty is the first legal document negotiated between the Holy See and the Palestinian state and constitutes an official diplomatic recognition.

"Yes, it's a recognition that the state exists," said the Vatican spokesman, the Rev. Federico Lombardi.

The Israeli foreign ministry said it was "disappointed" by the development. "This move does not promote the peace process and distances the Palestinian leadership from returning to direct and bilateral negotiations," the ministry said in a text message. "Israel will study the agreement and will consider its steps accordingly."

Palestinian President Mahmoud Abbas is due to visit Pope Francis on Saturday before the canonization of two new saints from the Holy Land a day later.

The Vatican has been referring unofficially to the state of Palestine for at least a year.

During Pope Francis' 2014 visit to the Holy Land, the Vatican's official program referred to Abbas as the president of the "state of Palestine." In the Vatican's latest yearbook, the Palestinian ambassador to the Holy See is listed as representing "Palestine (state of)."

In-Depth

ā€” The Associated Press