Hendon Labour Party has protested to the leader of the Labour group on Tower Hamlets Council over its support for a resolution to boycott Israel.
Councillors in the east London borough last month voted in favour of sanctions against the "pariah state".
They also called for a review of the council's waste collection contract with Veolia, claiming the multinational company's work in Israel assisted the "oppression" of Palestinians.
Hendon Labour party chairman Tom Lavelle and vice-chairman Adam Langleben called the council proposals "unacceptable, divisive and outside the mandate of a local authority", in a letter to Tower Hamlets Labour group leader Helal Uddin Abbas.
"Proposals such as these do not help London's cohesion, and do not provide a solution to the problems surrounding the Middle East." Tower Hamlets Mayor Luftur Rahman was elected as an independent after the Labour party rejected him as a candidate.