Israeli media reported that British diplomats serving in Ramallah and British representatives at the Gaza Coordination Center were asked to leave Israel within seven days.
A 30-day period was also set for the British Consulate in occupied East Jerusalem, which was asked to cease operations within that period.
The decision was reportedly taken after the United Kingdom moved to restrict trade in products made in Israeli settlements in the occupied West Bank. Israel also reportedly decided to close the British consulate in East Jerusalem responsible for relations with the Palestinians in response to the trade restrictions.
12 countries announce restrictions on settlement products
The foreign ministers of Canada, Denmark, Finland, France, Iceland, Ireland, Norway, Poland, Portugal, Spain, Sweden and the United Kingdom had announced in a joint written statement that they would restrict trade in goods produced in Israeli settlements.
The ministers' statement said that Israel had taken steps in the West Bank that weakened the two-state solution and that the situation had deteriorated. The statement also referred to acts of violence by Israelis who had seized Palestinian land and stressed the need to preserve the two-state solution.