Israel has demanded that the British consulate in East Jerusalem be closed and the accreditation of its diplomats will be revoked within 30 days, an Israeli official and two other sources familiar with the matter told Reuters, BTA reported.
British representatives participating in the US-led Gaza coordination mission in Israel, as well as British diplomats in Ramallah, must leave within seven days, the sources added.
Foreign Minister Gideon Saar said yesterday that Britain should close its consulate in East Jerusalem, which is accredited by the Palestinian Authority, in response to London's sanctions against Jewish settlers in the West Bank.
His British counterpart Ed Miliband responded today that regrets Israel's decision but says it is not surprising.
"We have weighed the costs and benefits of (our) action and we believe we simply cannot stand by because we fear Israeli action," he told the BBC.
Yesterday Miliband said Israel was "turning a blind eye" to the violence carried out by Jewish settlers against Palestinians.
Joining Britain, France and Canada have also said they will ban imports of goods from the settlements.
The Israeli government, which had been expecting the sanctions, is due to meet later today to discuss the response of countries that have followed the British move. Prime Minister Benjamin Netanyahu's office has not yet commented on the move.
France and Sweden, which also approved the British move, also have consulates in Jerusalem accredited to the Palestinian Authority.
In the past, Israel has caused diplomatic missions in Ramallah - the administrative capital of the Palestinian Authority, where Canada currently has a mission.