Barclays PLC (LSE:BARC) is to continue to broker Israeli government bond auctions but has considered pulling out after pressure from pro-Palestinian lobby groups, a report in the FT claimed.
The bank said it was "preparing a response" for Israel's latest request for bids on its next bond sale, with the source adding "that response is due next week".
Israel has recently increased the size and number of bond sales to help pay for its military actions against Hamas.
According to the FT, Barclays told Israeli authorities it will continue to act as a primary dealer for Israeli bonds alongside other major banks.
"We appreciate the bank's statement affirming its continued commitment to the State of Israel," Yali Rothenberg, Israel's accountant general said in the report.
Pro-Palestinian groups have heavily criticised Barclays for allegedly investing in suppliers to the Israeli military.
Recent protests in the UK saw several its branches targeted and vandalised by activists.
The bank has stated that it does not invest directly in companies that supply the Israeli forces, but it might hold or deal in shares or bonds for clients.