The UK has warned Israel that it will expel 27 Israeli diplomats from the Israeli embassy in London unless Tel Aviv reverses its decision to close the British Consulate General in East Jerusalem, Israel's Ynet news website reported on Monday.
The warning came in a message delivered to Israeli officials by British Ambassador to Israel Simon Walters, the daily said.
The development has further strained the countries' deteriorating bilateral ties.
Last month, the UK announced a trade ban on goods from illegal Israeli settlements in the occupied West Bank, citing the existence of "ethnic cleansing of Palestinians."
The move followed Israeli plans to build 1,200 new homes in the occupied territory, drawing widespread international condemnation, as all settlements in the West Bank are illegal under international law.
Israel announced plans to close the British Consulate in occupied East Jerusalem, which serves as a liaison for Palestinians, in response to the UK's move.
