Israel has reassigned its nominee for ambassador to Brazil, whose appointment Brasilia refused to accept, apparently because he is a former settler leader.
Dani Dayan will now become Israel’s consul general in New York, ending a seven-month diplomatic stand-off.
Israel had previously said it would not replace Mr Dayan as its nominee.
Mr Dayan’s appointment caused outrage among left-wing groups in Brazil, which lobbied President Dilma Rousseff to reject it.
The Argentina-born official was chairman of the Yesha Council, an umbrella group representing Jewish settlers in the occupied territories, from 2007 to 2013.
The fate of Jewish settlements in the West Bank and East Jerusalem – land claimed by Palestinians for a future state – is one of the most contentious issues between Israel and the Palestinians.
The settlements are considered illegal under international law, though Israel disputes this.
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