More than 12,000 Palestinians with American citizenship entered Israel from the West Bank since regulations were eased by authorities to meet the criteria for the U.S.' visa waiver program, according to Haaretz.

According to the Israeli newspaper, Israel has responded positively to the American request to treat its citizens equally when it comes to freedom of movement – regardless of whether they live in the West Bank, hold a Palestinian ID card, or a passport of an "enemy" country. 

The newspaper added that hundreds of Gazans would also be eligible to enter Israel from mid-September.

Israel, however, has insisted on maintaining the right to vet candidates based on security background of these Palestinian-Americans, and the right to refuse entry to those who have been involved or participated in "terrorism."

Israel's security establishment fears that Palestinians will attempt to forge American passports to gain entry into Israel, which happened last week at a checkpoint in the West Bank.