A divided Cabinet approved on Sunday a bill to anchor in law Israel's status as the nation-state of the Jewish people, legislation critics say could undermine its democratic foundation and the rights of its Arab minority.

Right-wing supporters of the initiative, including Prime Minister Benjamin Netanyahu, have pledged such a law, which has widened rifts within his governing coalition, would guarantee full equality for all of Israel's citizens.

A final wording of the bill is still pending, and Israel's attorney general has cautioned against giving Jewish values, based on religion and history, prominence over democratic principles in lawmaking and judicial rulings.