A theatre that refused to host the UK Jewish Film Festival (UKJFF) due to it being part-funded by the Israeli Embassy has now said it is prepared to stage the event in future years.
The Tricycle Theatre in north London was due to screen films in November but pulled out amid the conflict in Gaza.
Although this year's festival will be hosted elsewhere, the theatre has withdrawn its objections.
It said it had invited back the UKJFF "with no restrictions on funding".
In a joint statement, the Kilburn-based theatre and the UKJFF said: "Some weeks ago the UKJFF fell out, very publicly, with the Tricycle over a condition imposed by the Tricycle regarding funding.
"This provoked considerable public upset. Both organisations have come together to end that.
"Following lengthy discussions between the Tricycle and UKJFF, the Tricycle has now withdrawn its objection and invited back the UK Jewish Film Festival on the same terms as in previous years, with no restrictions on funding from the Embassy of Israel in London.
"The UKJFF and the Tricycle have agreed to work together to rebuild their relationship and, although the festival is not able to return in 2014, we hope to begin the process of rebuilding trust and confidence with a view to holding events in the future."
At the time of the theatre's decision to pull out of screening films for the festival, on 5 August, chairman of the UKJFF Stephen Margolis said the situation was "extremely saddening" and the theatre was looking to politicise the festival.
The 2014 festival is being held at other venues, in London, Nottingham and Manchester.