Holborn and St Pancras Labour Party has refused to back an anti-JNF campaign, endorsed earlier in the year by local MP Frank Dobson.
He is one of 48 signatories to an early day parliamentary motion in support of the Stop the Jewish National Fund Campaign, which accuses the JNF of "illegal expropriation" of Palestinian land and calls for a review of its charitable status.
The campaign was launched by a coalition of groups including the Palestinian Boycott National Committee and the International Jewish Anti-Zionist Network.
But on Tuesday, Holborn and St Pancras rejected a resolution put by Palestine Solidarity Campaign supporter Luca Salice, congratulating Mr Dobson on his stand.
JNF chairman Samuel Hayek said the Stop the JNF Campaign's claims were "a completely inaccurate reflection of the support we give to Israel, so we are pleased this motion was defeated."