Prime Minister Benjamin Netanyahu has cancelled talks with Germany's visiting foreign minister, snubbing Sigmar Gabriel over his decision to meet groups critical of Israel's treatment of Palestinians.
The dispute threatened to widen a rift between Israel and Germany over the Palestinian issue. Berlin has been increasingly critical of the settlement policies of Netanyahu's right-wing government in occupied territory Palestinians seek for a state.
"My policy is clear: Not to meet with diplomats who visit Israel and engage with organisations that slander Israeli soldiers and seek to have them put on trial as war criminals," Netanyahu said in Jerusalem late on Tuesday.
He said he was leading Israel "through proud nationalist polices and not by bowing our heads and grovelling".
But he emphasised that relations with Germany would remain strong and important.
Gabriel told reporters the decision was "not nice" and caught him by surprise since he generally had an open relationship with Netanyahu, but added that it did not spell "the end of diplomatic ties between the two countries".
On Monday, an Israeli official had said Netanyahu, who is also foreign minister, would not see Gabriel if he went ahead with meeting the Israeli group "Breaking the Silence".
The organisation, a frequent target of criticism by the Israeli government, collects testimony from Israeli veterans about the military's treatment of Palestinians in the Israeli-occupied West Bank.
Gabriel underscored the importance of Germany's ties to Israel during a meeting with Israeli President Reuven Rivlin.
Gabriel told reporters he found it noteworthy that Rivlin repeatedly emphasised that Israel was a democratic country with a right to freedom of expression.
Gabriel said it was normal to talk to civil society representatives in Israel.
He said it would be unthinkable if Israeli politicians were not allowed to meet with critics of the German government.
