A London theatre which refused to host the UK Jewish Film Festival (UKJFF) while it is sponsored by the Israeli embassy, amid the Gaza crisis, has now dropped its objection.

The Tricycle Theatre's change of mind follows lengthy discussion between both sides, but is too late for this year's festival as alternative venues have been arranged.

The Tricycle had been due to screen 26 films as part of the November event. It has hosted the festival for the last eight years.

But organisers were forced to seek new venues earlier this month after the theatre said the festival should "not accept funding from any party to the current conflict".

The festival receives a £1,400 grant from the Israeli embassy.

The theatre had offered to replace that funding with money from its own resources, but the UKJFF said the Tricycle's demands were unacceptable.

The row stirred debate around the UK. A protest had been staged outside the theatre with demonstrators complaining the Tricycle was punishing the Jewish diaspora for events in the Middle East.

A joint statement from the UKJFF and Tricycle Theatre said: "Following lengthy discussions , the Tricycle has now withdrawn its objection and invited back the UKJFF on the same terms as in previous years with no restrictions on funding from the embassy of Israel in London.

"The UKJFF and the Tricycle have agreed to work together to rebuild their relationship with a view to holding events in the future."

"We both profoundly hope that those who take differing views on the events of the last few weeks will follow our lead and come together to acknowledge that dialogue, reconciliation and engagement will resolve points of difference and ensure that cultural diversity thrives in all communities."