Note: I'm not even close to an expert in the Israeli politics, and I have no idea if something like this is workable. But it's an approach that I haven't seen mentioned before.
"The Federation Movement advocates a new political approach, whereby the State of Israel, as a federal state standing for equality and modernity, will apply Israeli law to Judea and Samaria (the West Bank), excluding Gaza. Alongside the application of Israeli law to the West Bank, all residents of the country will be recognized as citizens, enjoying equal rights guaranteed by the federal constitution. All residents will be able to exercise their religious and cultural rights within the framework of a regional system of governance, whereby the state will be divided into 30 cantons (regional governments), functioning under a central government. Each canton’s regional government will be elected by the local population and reflect its composition. Regional governments will be responsible for all aspects of governance, with the exception of security and foreign affairs, which will be managed by the central government in Jerusalem. This plan allows West Bank settlements to remain in place without the threat of international sanctions."
"The Federation Movement advocates a new political approach, whereby the State of Israel, as a federal state standing for equality and modernity, will apply Israeli law to Judea and Samaria (the West Bank), excluding Gaza. Alongside the application of Israeli law to the West Bank, all residents of the country will be recognized as citizens, enjoying equal rights guaranteed by the federal constitution. All residents will be able to exercise their religious and cultural rights within the framework of a regional system of governance, whereby the state will be divided into 30 cantons (regional governments), functioning under a central government. Each canton’s regional government will be elected by the local population and reflect its composition. Regional governments will be responsible for all aspects of governance, with the exception of security and foreign affairs, which will be managed by the central government in Jerusalem. This plan allows West Bank settlements to remain in place without the threat of international sanctions."