A theatre has refused to host the UK Jewish Film Festival while it is sponsored by the Israeli Embassy amid the ongoing crisis in Gaza.

The Tricycle Theatre in London, which has hosted the festival for the past eight years, had been due to screen at least 26 films as part of the event in November.

But Indhu Rubasingham, artistic director of the Tricycle, said the festival should not accept funding from "any party to the current conflict" between Israel and Palestinians.

She said the theatre offered to use funding from its own resources to replace the festival's sponsorship from the Israeli Embassy in London.

But the UK Jewish Film Festival (UKJFF) said the Tricycle's demands were "entirely unacceptable" and it was taking its screenings elsewhere.

Stephen Margolis, chairman of the UKJFF, said: "The Jewish community as a whole has enjoyed a successful relationship with the Tricycle and it is extremely saddening that they should look to politicise this festival by making demands that the UKJFF could never accept."

Judy Ironside, executive director of the UKJFF, added: "We have always sought to convey a wide perspective on the conflicts in the Middle East and initiate open dialogue with our audiences and guest speakers, and the Israeli Embassy have always supported us in this.

"The Tricycle have refused to take this into account in their decision."

The festival was backed by actress Maureen Lipman, who said: "The Tricycle have decided to punish Jewish people in the diaspora for one view of what is taking place in the Middle East and that is quite unacceptable."

In a statement on the Tricycle's website, Ms Rubasingham said: "The Tricycle has always welcomed the festival and wants it to go ahead. We have proudly hosted the UK Jewish Film Festival for many years.

"However, given the situation in Israel and Gaza, we do not believe that the festival should accept funding from any party to the current conflict. For that reason, we asked the UK Jewish Film Festival to reconsider its sponsorship by the Israeli Embassy.

"We also offered to replace that funding with money from our own resources. The Tricycle serves many communities and celebrates different cultures and through difficult, emotional times must aim for a place of political neutrality.

"We regret that, following discussions, the chair of the UKJFF told us that he wished to withdraw the festival from the Tricycle.

"To be clear, at this moment, the Tricycle would not accept sponsorship from any government agency involved in the conflict.

"We hope to find a way to work with the UK Jewish Film Festival to allow the festival to go ahead at the Tricycle as it has done so successfully for the past eight years."

National Theatre director Nicholas Hytner backed the Tricycle's stance.

He said: "I greatly regret the UKJFF's decision to leave the Tricycle cinema. Indhu Rubasingham and the Tricycle board could not have made clearer their commitment to Jewish culture or their desire to host a festival that would have included films from all over the world, including Israel.

"It is entirely understandable that they felt obliged to insist that no government agency should sponsor the festival.

"The Tricycle serves a diverse community with a notably diverse repertoire and it has a clear responsibility to make no statement about the dispute that is behind the current conflict.

"It greatly saddens me that the UKJFF have unwisely politicised a celebration of Jewish culture and I deplore any misrepresentation of the Tricycle's position. I support Indhu Rubasingham and the Tricycle without reservation."