Israel said on Friday that the International Court of Justice (ICJ) had failed to address the issue of "Palestinian terror" in determining that the barrier is illegal.

"It fails to address the essence of the problem and the very reason for building the fence - Palestinian terror," a Foreign Ministry spokesman told a news briefing in response to the ICJ ruling on the West Bank separation fence.

The ruling, which is a advisory one, says the security fence in the West Bank contravenes international law, that it must be dismantled, and that compensation must be paid to the Palestinian owners of property confiscated for its construction.

Earlier in the day, Israeli Justice Minister Yosef Lapid also expressed his rejection to the ICJ ruling, saying that "we will comply with our High Court decisions, and not with the panel of European Union nations, which are not exactly suspected of excessive sympathy for Israel."

However, a senior Palestinian official said that Palestinians will seek UN sanctions against Israel after the ruling.

"The next step is to approach the UN General Assembly and Security Council to adopt resolutions that will isolate and punish Israel. As of today Israel should be viewed as an outlaw state," said Nabil Abu Rdainah, senior adviser to Palestinian leader Yasser Arafat.