The 625-strong observer force, which will have a six-month renewable mandate, is the first in the Western hemisphere.
The all-officer observer force is drawn from 26 countries.
It will be up to the Security Council to authorize the formation of an observer force.
The group also considered an offer to send a an observer force to Port-au-Prince to help restore democracy.
I would ask us to send an observer force because there could be more trouble in those local elections than in the other elections.
He also wants a permanent international observer force stationed in the Golan to insure that Israel lives up to its commitments.
The Iraqi representative said Baghdad was ready to accept the military observer force along its border with Kuwait provided for in the new peace offer.
The 15-member Council voted unanimously to send to Yugoslavia a military observer force that is much smaller than originally envisioned.
In taking today's action, the Security Council avoided the issue of putting together another observer force under United Nations command.
A Foreign Ministry spokesman said the government knew of no outside observer force on the ground in Israel or the West Bank.