London's Tricycle Theatre has withdrawn its objection to hosting the U.K Jewish Film Festival.
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In a joint statement issued by the U.K. Jewish Film Festival and the Tricycle Theatre, both parties confirmed the film festival was "invited back on the same terms as in previous years with no restrictions on funding from the Embassy of Israel in London."
Both parties "have agreed to work together to rebuild their relationship and although the Festival [will not] return in 2014, we hope to begin the process of rebuilding trust and confidence with a view to holding events in the future."
The Tricycle Theatre, which has hosted the festival for the past eight years, originally linked its decision to disinvite the film festival to the Israel-Gaza war.
"The festival receives funding from the Israeli embassy and given the current conflict in Israel and Gaza, we feel it is inappropriate to accept financial support from any government agency involved," said Tricycle artistic director Indhu Rubasingham, according to British media reports.
Jonathan Levy, chairman of the Tricycle, said in a written explanation that the theater could not be associated with "any activity directly funded or supported by any party to the conflict," given the "unforeseen and unhappy escalation that has occurred over the past three weeks, including a terrible loss of life."