Watch: Why was the sign at the British consulate in East Jerusalem removed?

The consulate, first established in 1838, was set to be closed by the Israeli government in retaliation for UK sanctions. Israel said in September it would shut the British consulate, in retaliation for UK sanctions on Israeli settlements in the occupied West Bank which are illegal under international law. The UK government had made last-ditch efforts to persuade Israel not to close the building ahead of Thursday's deadline, after the Israeli government said it would close the consulate within 30 days of the UK sanctions announcement. Most diplomats will leave the British consulate in occupied East Jerusalem, Israel says, but the UK insists the building "will not be closing", and will operate as a "UK Mission".

The BBC's Middle East correspondent Yolande Knell says the UK Foreign Secretary Ed Miliband "sees this as being a good outcome". The consulate is distinct from the UK embassy in Tel Aviv, which is the UK's main diplomatic hub with Israel. Watch: Why was the sign at the British consulate in East Jerusalem removed? Video, 00:01:17Watch: Why was the sign at the British consulate in East Jerusalem removed? Up Next. What we know about Christa Pike’s ‘unprecedented' recovery after failed execution. Video, 00:01:15What we know about Christa Pike’s ‘unprecedented' recovery after failed execution Watch: Riot police clash with school protesters and use tear gas