"This law is evidence that, without doubt, Israel is the most Zionist, fascist, and racist state in the world," Erdogan told his ruling Justice and Development (AK) Party's parliamentary group meeting.
"I call on the Islamic world, Christian world, all democratic and liberal states, non-governmental organizations, and members of the media to move against Israel," he added, Anadolu Agency reported.
Drawing parallels to Adolf Hitler's Nazi racism, Erdogan said: "The Israeli administration's view to identify those ancient lands as belonging to Jews alone is no different from Hitler's obsession with the Aryan race."
"The Hitler spirit which dragged the world into a major disaster has risen again among some Israeli officials," he added.
Last week, the Knesset approved the law, which describes Israel as “the nation-state of the Jewish people".
The legislation further states that a “united Jerusalem (al-Quds)” is the capital of Israel and that Hebrew is the country's official language, stripping Arabic of its earlier designation as an official language, while recognizing its “special status".
Arab lawmakers blasted the law’s “Israeli racism against the Arab minority".
Israeli Prime Minister Benjamin Netanyahu hailed the legislation, calling its passage as a “defining moment for Zionism and Israel."
Turkey has denounced the legislation for trying to strip Palestinians of their rights.