Britain has withdrawn diplomats from its consulate in East Jerusalem after reaching an agreement with Israel over the future of the diplomatic mission.

According to Israel, the consulate had ceased operating in its previous capacity. Britain insisted that the building would remain open under the name UK Mission, Jerusalem.

The move follows a diplomatic dispute over British measures targeting Israeli settlements in the occupied West Bank.

What has happened to the British consulate?

Israeli Foreign Minister Gideon Saar said 20 British diplomats, including the consul general, were ending their assignments and leaving Israel.

Seven diplomats would be allowed to continue working from the building, although their activities would be "very limited," he said.

The consulate's diplomatic emblem and sign were removed from the building on Thursday.

British Foreign Secretary Ed Miliband said London had temporarily withdrawn some staff and their families to ensure their safety.

He insisted the mission would remain independent and operational, continuing to provide "vital services" and work with Palestinians.

Miliband said Britain did not accept that Israel had the legal right to close the consulate, which was established in 1838.

Why did Israel order the consulate to close?

Israel ordered the closure on September 8 in retaliation for British measures against Israeli settlements in the occupied West Bank.

Britain joined other countries in announcing trade restrictions and sanctions targeting settlements and individuals linked to settler violence against Palestinians.

Israel condemned the measures as a diplomatic attack.

The British consulate has traditionally handled relations with Palestinians in East Jerusalem, the West Bank and Gaza, separately from Britain's embassy in Tel Aviv.

Israel captured East Jerusalem in 1967 and subsequently annexed it, a move not recognized by most countries, including Britain.

Miliband said Britain would not take retaliatory diplomatic action while talks with Israel continued.

He reaffirmed London's support for a two-state solution to the Israeli-Palestinian conflict.

Edited by: Elizabeth Schumacher

If you rely on our team for trusted reporting, please take a moment to select us as your Preferred Source on Google​​​​​​​, so you'll always see our verified news first.