Avigdor Lieberman said Robert Serry, the world body's special envoy on the Middle East peace process, had first tried to convince the Palestinian Authority (PA) to transfer USD 20 million from Qatar to resolve a pay crisis for Hamas employees in Gaza, Channel Two television reported.
But after Palestinian president Mahmud Abbas refused to do so, the rightwing ultra-nationalist Lieberman charged, Serry proposed UN help in making the transfer, the broadcaster reported.
Serry's spokesman Murad Bakri told AFP it was the PA that approached the UN envoy over the issue, and insisted that no decision would be taken without Israeli agreement.
Israel had been kept informed of "all these discussions", Bakri added.
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Lieberman told AFP he was seeking an "urgent meeting" tomorrow about the row in which Israeli television reported the foreign minister would propose that Serry be declared persona non grata in Israel.
"We look upon Robert Serry's behaviour with the utmost seriousness, and strong measures will be imposed," Israeli foreign ministry spokesman Yigal Palmor told AFP.
"The foreign ministry issues diplomatic visas and can also withdraw them," he added.
On June 13, the gas-rich Gulf state of Qatar said it would help the new Palestinian unity government pay former employees of Islamist movement Hamas's disbanded Gaza government.
Doha said it would contribute a total of USD 60 million while the PA grapples with a pay row, the first challenge for a government formed to try to end years of Palestinian rivalry.