Israel on Wednesday said it would increase the operating hours of the key Allenby border crossing with Jordan in a move aimed at boosting the Palestinian economy.

At a cabinet committee charged with improving the West Bank economy, Prime Minister Benjamin Netanyahu ordered the extension of hours of operation of Allenby for the transport of goods, his office said in a statement.

"Until now the crossing was open until eight in the evening," a spokesman for the prime minister said. "It will now be open until midnight, with the option to extend operations to 24 hours according to need."

The border checkpoint near the West Bank town of Jericho is the only point of access to Jordan for Arab residents and businesses in the West Bank.

Netanyahu also vowed to push ahead with development of three internationally-backed West Bank projects that have been stalled for years, instructing relevant government bodies to remove the bureaucratic obstacles.

The projects include a French-backed light-industrial park in Bethlehem, a German-assisted industrial park near Jenin and a Japanese-funded scheme to export farming products from Jericho.

Since forming a government in February, the hawkish prime minister has come under heavy international pressure to remove economic restrictions on Palestinians and end Israeli settlement building in the West Bank.