Israel's parliament has passed a bill that prohibits the United Nations relief agency for Palestinian refugees, known as UNRWA, from operating in Israel.

The legislation was passed by a majority vote on Monday. The move could impact UNRWA's activities to provide support for Palestinian refugees in the Gaza Strip and the West Bank.

Israel argues that some UNRWA staffers were involved in the Hamas' surprise attack on Israel in October last year.

The UN has dismissed nine staffers who the organization suspects may have been involved in the attack.

Israel has since repeatedly pointed to possible links between UNRWA and Hamas. It has called for UNRWA to be disbanded and its responsibilities transferred to other UN agencies.

UNRWA reacted sharply to the vote by the Israeli parliament against the agency, saying it is "unprecedented and sets a dangerous precedent."

It also said that the bill's passage opposes the UN Charter and violates the State of Israel's obligations under international law.

UNRWA criticized the Israeli ban, labeling it as the "latest in the ongoing campaign to discredit UNRWA and delegitimize its role towards providing human-development assistance and services to Palestine Refugees."

There are concerns that the ban could hinder UNRWA's activities to distribute humanitarian aid supplies and provide medical services in Gaza and the West Bank, as its activities need coordination with Israeli officials.

Japan, Canada and five other nations issued a joint statement on Sunday, when the bill was under deliberation in the Israeli parliament.

The nations expressed grave concerns, saying that the provision of assistance and services by UNRWA would be "severely hampered if not impossible, with devastating consequences on an already critical and rapidly deteriorating humanitarian situation, particularly in northern Gaza."