Ayelet Balaban, a dual citizen born in Jerusalem, has said this week that the birthplace listed on her renewed UK passport was changed from the holy city to the occupied Palestinian territories.
The Home Office told the JC that the entry was an “error” and that it was investigating.
Ms Balaban spoke to Israeli broadcaster Kan on Wednesday after receiving her new travel document earlier this week.
“How do I get around with a passport like this? This is my private passport,” she said.
“I thought that maybe they were confused, because I live in a moshav of Jewish evacuees from Gaza," she added.
The Times of Israel reports that Ms Balaban lives in the Ganei Tal village and was born to a British father at Hadassah Mount Scopus Hospital in Jerusalem.
Ms Balaban told the Israeli outlet that she had been "shocked" by the change and noted that it came after last month's 11-day war during which the business she runs with her husband was temporarily forced to close.
“We’ve just been trying to lick our wounds and it has been really shocking for me,” she said.
The status of Jerusalem has been the source of tensions for centuries and most recently was a spark for the Israel-Gaza conflict that left hundreds dead.
The UK considers east Jerusalem to be part of the occupied Palestinian territories but recognises Israel’s “de facto authority over West Jerusalem.”
It has withheld recognition of sovereignty over Jerusalem pending a final determination of its status.
A Home Office spokesperson said: “We apologise for this error and are urgently investigating how this has occurred. We will contact Ms Balaban about the issuing of a new passport showing the correct place of birth.”