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LONDON, June 9 (Reuters) - Britain on Tuesday announced a package of sanctions targeting what the government said were networks that helped finance, facilitate and carry out settler violence in the occupied West Bank.

A statement issued by the British government said the sanctions, which came in coordination with Canada, France and Norway, are aimed at disrupting the flow of funding that has “allowed extremist settler groups to act with impunity” in the West Bank.

The British government said that continued illegal settlement expansion undermines the possibility of a two-state solution, amid unprecedented levels of settler violence "aimed at deliberately destroying Palestinian homes and livelihoods in the West Bank."

Britain also renewed its call for the Israeli government to halt settlement expansion, curb settler violence and prosecute those responsible, and lift restrictions on the Palestinian economy.

The government threatened to take further measures unless the situation improved.

Israel rejects accusations that its forces protect settlers during attacks on Palestinians in the West Bank, asserting that these actions are exceptional incidents that violate military protocol and are subject to investigation.

The British sanctions come in the wake of a United Nations investigation that concluded Israeli authorities were directly involved in settler attacks that killed, injured and displaced Palestinians in the occupied West Bank, while Israeli security forces provided protection to the settlers.

Under Prime Minister Keir Starmer, London halted free trade talks with Israel, suspended a number of arms export licenses, and imposed sanctions on Israeli ministers Itamar Ben-Gvir and Bezalel Smotrich, who belong to the extreme right wing.

Last year, Britain joined allies, including France and Canada, in recognizing a Palestinian state.