They want to replace it with a Genocide Day that would recognise the mass murder of Muslims in Palestine, Chechnya and Bosnia as well as people of other faiths.

The draft proposals have been prepared by committees appointed by Blair to tackle extremism. He has promised to respond to the plans, but the threat to the Holocaust Day has provoked a fierce backlash from the Jewish community.

Holocaust Day was established by Blair in 2001 after a sustained campaign by Jewish leaders to create a lasting memorial to the 6m victims of Hitler. It is marked each year on January 27.

The Queen is patron of the charity that organises the event and the Home Office pays £500,000 a year to fund it. The committees argue that the special status of Holocaust Memorial Day fuels extremists’ sense of alienation because it “excludes” Muslims.

A member of one of the committees, made up of Muslims, said it gave the impression that “western lives have more value than non-western lives”. That perception needed to be changed. “One way of doing that is if the government were to sponsor a national Genocide Memorial Day.

“The very name Holocaust Memorial Day sounds too exclusive to many young Muslims. It sends out the wrong signals: that the lives of one people are to be remembered more than others. It’s a grievance that extremists are able to exploit.”

The recommendation, drawn up by four committees including those dealing with imams and mosques, and Islamaphobia and policing, has the backing of Sir Iqbal Sacranie, secretary-general of the Muslim Council of Britain.

He said: “The message of the Holocaust was ‘never again’, and for that message to have practical effect on the world community it has to be inclusive. We can never have double standards in terms of human life. Muslims feel hurt and excluded that their lives are not equally valuable to those lives lost in the Holocaust time.”

Ibrahim Hewitt, chairman of the charity Interpal, said: “There are 500 Palestinian towns and villages that have been wiped out over the years. That’s pretty genocidal to me.”

The committees are also set to clash with Blair on his proposal to ban Hizb ut-Tahrir, the radical Islamic group. Government sources say they will argue that a ban is unjustified because the group, which is proscribed in much of the Middle East, neither advocates nor perpetrates violence in the UK.

A Home Office spokesman said it would consider the proposals for a separate Genocide Day for all faiths but emphasised that it regarded the Holocaust as a “defining tragedy in European history”.

Mike Whine, a director of the British Board of Deputies, said: “Of course we will oppose this move. The whole point is to remember the darkest day of modern history.”

Louise Ellman, Labour MP for Liverpool Riverside and a Holocaust Memorial trustee, said: “These Muslim groups should stop trying to evade the enormity of the Holocaust.”

The seven committees finalise their recommendations today at St George’s House, Windsor, and will submit them to Blair and Charles Clarke, the home secretary, on September 22.

Explore UK News

• Crime News

• Education News

• Health News

• Science News

• Scotland News

Times Recommends

• Revealed: how Eurocrat leaked secrets over dinners
• Politicians use the net to brainstorm
• British spy in longbow plot to kill Himmler