Right-wing Likud Knesset candidate Moshe Feiglin outlined a plan on Tuesday to pay families in the West Bank $500,000 each to emigrate.
Speaking at a one-state solution conference in Jerusalem, he said: "The state of Israel is paying 10 per cent of its GDP every year for the two-state solution and the Oslo Accords. It's paying for separation fences, Iron Domes and a guard at every café. Soon we'll have to place Iron Domes in every school in Tel Aviv.
"With this budget we can give every Arab family in Judea and Samaria $500,000 to encourage it to immigrate to a place with a better future.”
He said that Western nations with low birth rates would be happy to have immigrants who “know how to build”.
The controversial comments, which are contrary to the Likud party’s policy, come after Mr Feiglin was detained by police for attempting to pray on Temple Mount on Tuesday morning.
Mr Feiglin was arrested for prostrating himself and attempting to pray out loud, actions which are forbidden for Jews at the holy site.
Police are currently considering whether to recommend the Likud candidate be indicted for disorderly conduct and hindering a police officer from fulfilling his duties. It is the third time in the past year Mr Feiglin has been detained on the site for similar offences.
Speaking at the same conference on Tuesday, Public Diplomacy Minister Yuli Edelstein called for annexation of the West Bank.
“Lack of Israeli sovereignty over Area C means the continuation of the status quo,” said Mr Edelstein, referring to the area of the West Bank currently under Israeli military control. “It strengthens the international community’s demand for a withdrawal to the pre-1967 lines”, he said.