Concerns have been raised about the devastating effect this could have on aid.
The leader of the UK’s network for NGOs has warned that the UK must stand up for the rights of a UN agency in Palestine.
The United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) has been banned from operating within Israel and occupied East Jerusalem after a vote in the Israeli Parliament.
The legislation accused UNRWA of colluding with Hamas in Gaza, with contact between UNRWA officials and the Israeli Government to be banned within three months.
Experts have warned that this will have a profound effect on aid being provided to Palestinians amid the ongoing genocide.
UNRWA are the main UN agency operating on the ground in Gaza, but the Israeli military controls all crossings across the Israel-Gaza border.
Those supporting NGOs from the UK have criticised the decision, and called for action from the UK Government, warning "no other entity can replace UNRWA's function".
Romilly Greenhill, CEO of Bond, the UK network for NGOs, said: "The UK government needs to urgently work with allies to dissuade Israel from implementing a proposed ban on UNRWA operations.
“Cutting off vital services for Palestinian refugees will have a catastrophic humanitarian impact and undermine international commitments to human rights.
“The UK must advocate for UNRWA’s ability to continue its critical work and the protection of Palestinian communities under international law - no other entity can replace UNRWA's function."