Israel has begun clearing a site belonging to the UN agency for Palestinian refugees (UNRWA) in East Jerusalem that had previously been used as a training centre, according to Israeli officials.

"The State of Israel will not allow an organization whose employees were complicit in terrorism and the October 7 massacre to operate within its territory, and will act against it by all means at its disposal," Israeli Prime Minister Benjamin Netanyahu said, according to his office.

Netanyahu ordered the site be cleared, his office said in a statement on Tuesday.

Far-right National Security Minister Itamar Ben-Gvir published a photograph of the training centre showing an Israeli flag flying over the building.

According to Israeli officials, a school for boys is to be established on the site and will teach according to the Israeli curriculum. Further schools, a mosque and sports and health facilities are also planned for residents of the predominantly Arab neighbourhood over the coming years.

A spokesman for the Israeli Foreign Ministry described the work as "renovations" and said the UN Relief and Works Agency for Palestine Refugees in the Near East had no ownership rights to the property.

The Palestinian Authority described the clearance of the site as "a serious violation of international law." Palestinian media reported confrontations between Palestinians and Israeli security forces during the operation.

Israel accuses UNRWA of employing individuals who were involved in terrorist activities carried out by the Palestinian Islamist organization Hamas.

The Israeli parliament subsequently passed legislation banning UNRWA from operating on Israeli territory and prohibiting Israeli officials from cooperating with the agency.

In January, Israeli forces demolished UNRWA's headquarters in East Jerusalem.

Israel captured predominantly Arab East Jerusalem during the 1967 Six-Day War and later annexed it. The status of Jerusalem remains one of the central issues in the Middle East conflict.

Israel claims Jerusalem as its "eternal and indivisible capital," a position that is disputed internationally. The Palestinians want East Jerusalem to serve as the capital of a future internationally recognized Palestinian state.