McDonald’s has rejected an invitiation to open a restaurant in a West Bank settlement .

Omri Padan, the owner of McDonald's-Israel, has reportedly declined a request to open one of the fast-food restaurants in a new shopping centre in the West Bank settlement of Ariel.

According to the shopping centre’s owner, Tzahi Nahmias, several international franchises have pulled out of the project.

Mr Nahmias was reported in the Israeli media as saying: "The mediators told us that branches operating abroad and other companies holding rights in Israel for international brand names are worried about the potential negative response toward their businesses abroad if they open shops in the mall."

Knesset member Ayelet Shaked, from the Jewish Home Party, plans to boycott McDonald’s in response to the decision.

There are 170 McDonald’s branches in Israel, of which 40 are kosher.

Mr Padan is a founder of the left-wing movement Peace Now.