Israel's National Security Minister Itamar Ben Gvir was pictured rejoicing in the passing of a controversial bill that would allow the execution of Palestinian prisoners.

The far-right minister, who has largely championed the legislation, was seen celebrating its approval by drinking and serving alcohol to members of the Israeli parliament.

The Knesset approved the bill in its last readings on Monday with 62-48 vote in favour, despite international pleas to "abandon" the ruling.

"This is a day of justice for the victims and a day of deterrence for our enemies. No more revolving door for terrorists, but a clear decision. Whoever chooses terrorism chooses death," Ben Gvir said, sporting the golden noose-shaped pin symbolising his campaign calling for the execution of Palestinian detainees.

Knesset member Limor Son Har-Melech, who spearheaded the law, called the occasion a day where Israel "chose life" and said the decision is an example of "true Jewish morality".