"The Church's gesture will hurt Israelis and Jews without helping the Palestinians," he said in this week's Jewish Chronicle, adding that Israel needed "support, not vilification".

The Synod overwhelmingly backed calls for the Church Commissioners to remove its funds from companies that did business with Israelis involved in the occupied territories.

Its primary target was the £2.2 million that Church bodies have invested in the American firm Caterpillar, which manufactures tractors that have been used by the Israelis to demolish Palestinian homes.

The vote was largely symbolic as the Synod cannot force the commissioners or other bodies to withdraw their funds, and its Ethical Investment Advisory Group rejected pressure to disinvest in September.

But the decision will be seen by many Jews as a betrayal because it was personally backed by the Archbishop of Canterbury, Dr Rowan Williams, a leading advocate of stronger relations between the faiths.

Dr Williams attempted to limit the damage immediately after the vote on Monday last week by writing a placatory letter to the Chief Rabbi.

Dr Williams admitted in the letter that it had been "unfortunate" that the Church's decision had come at a time when anti-Semitism was on the rise and Israel faced "challenges" from Hamas, the new Palestinian authority, and Iran.

But Sir Jonathan said in his article today: "The vote of the Church of England to 'heed' a call to disinvestment from certain companies associated with Israel was ill-judged even on its own terms.

"The immediate result will be to reduce the Church's ability to act as a force for peace between Israel and the Palestinians for as long as the decision remains in force."

Sir Jonathan said that, instead of penalising Israel, the Church could have chosen to invest in the Palestinian economy.

END