British Foreign Secretary Ed Miliband confirmed Thursday that the British Consulate General would remain open but would now operate as the UK Mission, Jerusalem, following discussions with Israeli authorities.

Israel had ordered the consulate to close by Thursday in response to Britain’s proposed sanctions against Israeli settlements in the occupied West Bank, which are considered illegal under international law.

Israeli Foreign Minister Gideon Saar said the government had agreed to allow Britain to maintain a limited diplomatic presence at the building, with seven diplomats permitted to continue working there.

However, 20 British diplomats, including the consul general, are expected to end their assignments and leave Israel.

Earlier Thursday, Reuters journalists witnessed workers removing signs identifying the building as the British Consulate General, including a plaque marking its consular section. The British flag remained flying above the premises.

Miliband rejected Israel’s claim of authority to close the diplomatic facility, arguing that the consulate is located in East Jerusalem, which Israel captured during the 1967 Middle East war and has occupied since.

In a statement, the foreign secretary said Britain had reached an arrangement that would allow the building to remain operational despite the diplomatic disagreement.

“Our Consulate General building will not be closing, and will be known as the UK Mission, Jerusalem from today,” Miliband said.

He emphasized that the renamed mission would continue providing essential services and maintaining Britain’s engagement with Palestinians.

According to Miliband, the diplomatic facility “will continue to deliver vital services and our work with the Palestinian people.”

The dispute reflects continuing tensions between London and Israel over Israeli settlement expansion and Britain’s position on Palestinian rights and the status of occupied territories.

Although the two governments have reached an arrangement allowing the mission to remain open, the reduction in diplomatic personnel represents a significant change in Britain’s presence in East Jerusalem.

The development also highlights ongoing disagreements over diplomatic authority in East Jerusalem, whose status remains one of the central issues in the Israeli-Palestinian conflict.