The Israeli parliament gave preliminary approval on Monday to a bill that declares the main United Nations relief organisation for Palestinians a terrorist organisation and proposes to sever relations with the body, Reuters reports.

The vote against the United Nations Relief and Works Agency for Palestinian Refugees (UNRWA) is the latest step in an Israeli push against the Agency, which Israeli leaders have accused of collaborating with the Hamas Movement in Gaza.

Israel has said hundreds of UNRWA staff are members of terrorist groups, including Hamas and Islamic Jihad, but has yet to provide evidence to a UN-appointed review.