VATICAN CITY — The Vatican signed a treaty with the “State of Palestine” on Friday, saying it hoped its legal recognition of the state would help stimulate peace with Israel and that the treaty itself would serve as a model for other Mideast countries.

Vatican Foreign Minister Paul Gallagher and his Palestinian counterpart, Riad al-Malki, signed the treaty at a ceremony inside the Vatican.

Israel expressed disappointment when the Vatican announced last month that it had reached final agreement with the “State of Palestine” on the treaty regulating the life of the Catholic Church in the Palestinian territories.

It repeated that regret in a Foreign Ministry statement Friday, saying the move hurt peace prospects and would discourage the Palestinians from returning to direct negotiations. It warned that it would study the agreement “and its implications for future cooperation between Israel and the Vatican.”

Gallagher, though, said he hoped the Vatican’s recognition “may in some way be a stimulus to bringing a definitive end to the long-standing Israeli-Palestinian conflict, which continues to cause suffering for both parties.”