JERUSALEM—Israeli Prime Minister Benjamin Netanyahu urged the residents of the illegal West Bank outpost of Migron to accept a compromise on its evacuation.

Under the compromise, permanent housing for the residents of Migron would be built on state lands near the outpost. The outpost would, however, be evacuated by the March 31 deadline set last summer by Israel’s Supreme Court.

“The government calls on the residents of Migron to agree to the proffered compromise and thus allow the Government to soon request that the Court approve the arrangement,” Netanyahu said Sunday at the weekly Cabinet meeting. He said the Cabinet wants to honor the court’s decision “by agreement and peacefully.”

“This is a good proposal. It does not solve all of the problems, but it does resolve the problem of Migron,” he said.

About 50 families live in the outpost, located some 14 miles north of Jerusalem.