The municipality of Oslo has demanded that the city's Israeli embassy is moved to a different location because of concern that its current address poses a security risk and is a nuisance.
Embassy staff have been given a year to find a new building, according to Israeli newspaper Ynet.
However they have found it difficult to find a suitable place and, in a cable sent to Jerusalem, ambassador Michael Eligal claimed no one wanted to sell to them.
A spokesman for Israel’s Foreign Ministry condemned the Norwegian authorities for “capitulating to public opinion that is hostile to Israel."
He said: "They are doing everything they can to make things more difficult for the embassy."
Last week diplomatic officials warned that four Israeli embassies could be closed unless security concerns were reduced.