Provided is an apparatus for use in directional drilling, which apparatus comprises: (a) a drill bit; (b) at least one steering actuator capable of exerting a longitudinal force on the drill bit, so as to change the direction of drilling; and/or (c) at least one drill bit steering insert, capable of extending and retracting so as to change the cutting characteristics of the drill bit and thereby change the direction of drilling. Further provided is a method of directional drilling, employing the apparatus of the invention.