The Vatican officially recognized the state of "Palestine" in a new treaty finalized today, reports MSNBC, prompting Israeli concern that the move hurts peace prospects.

The Vatican has been referring unofficially to the state of Palestine for at least a year, but the treaty, which concerns the activities of the Catholic Church in Palestinian territory, is the first legal document negotiated between the Vatican and a Palestinian state and constitutes official diplomatic recognition.

This makes it clear that the Vatican has switched its diplomatic recognition from the Palestine Liberation Organization to the state of Palestine. The Vatican’s foreign minister, Monsignor Antoine Camilleri, acknowledged the change in status, given that the treaty was initially inked with the PLO and is now being finalized with the “state of Palestine.”

“Yes, it’s a recognition that the state exists,” said Vatican spokesman Rev. Federico Lombardi.

The Israeli foreign ministry said it was “disappointed”: “This move does not promote the peace process and distances the Palestinian leadership from returning to direct and bilateral negotiations. Israel will study the agreement and will consider its steps accordingly.”

During Pope Francis’ 2014 visit to the Holy Land, MSNBC notes, the Vatican’s official program referred to Abbas as the president of the “state of Palestine.” In the Vatican’s latest yearbook, the Palestinian ambassador to the Holy See is listed as representing “Palestine (state of).”

Palestinian President Mahmoud Abbas is heading to Rome to attend Pope Francis’ canonization Sunday of two new saints.