A former Israeli intelligence chief has pulled out of visiting Britain after being told that he could be arrested for war crimes over a 2002 bombing that killed nine Palestinian children.

Avi Dichter, who is one of Ehud Olmert's most senior Cabinet ministers, withdrew from attending an Israeli-Palestinian summit at King's College, scheduled for early January, after the country's Foreign Ministry advised him not to attend.

Israeli officials said that they were concerned about a law that allows for private individuals to file international war-crimes complaints which could lead to Mr Dichter being arrested during his time in the country.

The Foreign Ministry claimed that it had information that "extreme leftist" activists were planning to submit such a petition over the 2002 assassination of Salah Shehadeh, a senior Hamas militant, in the Gaza Strip, an incident which also killed his bodyguard, 13 bystanders and nine children.

Mr Dichter says he was told that he would not be immune from prosecution as he was not making a diplomatic visit but was planning to attend in a private capacity.

"Minister Dichter has cancelled this trip following threats of him being arrested in Great Britain. This is an intolerable situation," Barak Sari, his spokesman said, announcing the decision.

The former intelligence chief, currently the Israeli Public Security Minister, is the latest in a line of former military commanders who have cancelled trips to Britain fearing arrest under the Geneva Conventions Act 1957, which gives the UK universal jurisdiction to arrest and try suspected perpetrators of “grave breaches” of the Fourth Geneva Convention 1949.

Under a quirk in the law sometimes used by human rights activists, individuals can petition police to arrest suspected war-criminals and forces take a decision whether to investigate.

It nearly caused an embarrassing diplomatic incident in September 2005 when Doron Almog, a former Israeli defence commander, arrived in London for a private engagement and found that a police officer was waiting in the terminal with an arrest warrant submitted by human rights activists. Told of what was happening, Mr Almog remained on the plane and returned to Israel.

According to Haaretz, the Israeli daily newspaper, Israel has registered its concern with the British Government over the matter on several occasions and urged for the law to be changed, or exemptions made.

The newspaper claimed that Ehud Barak, the Defence Minister, and Tzipi Livni, the Foreign Minister, had held separate meetings with David Miliband, the Foreign Secretary. It added that Mr Miliband said his government was working on the matter but did not promise anything.

The Shehadeh killing led some international human rights groups to call for criminal charges against Israeli officers, which also included Lieutenant General Dan Halutz, a former chief of staff, who was the air force commander at the time.

The Foreign Office insisted tonight that it had not given any advice to Mr Dichter about whether or not to come. "Questions of immunity are ultimately for the courts to decide,” a spokeswoman said.

A Home Office spokeswoman said that Jacqui Smith, the Home Secretary, was considering amending the legislation to stop private prosecutors putting forward arrest warrants.

“The current position is that there is extra territorial jurisdiction to prosecute war crimes and, although a prosecution cannot proceed without the consent of the Attorney General, section 25(2) of the Prosecution of Offences Act 1985 provides that this requirement will not prevent the issue or execution of an arrest warrant or an arrest without a warrant," she said.

"This allows the police to act quickly to arrest suspects but also allows a private prosecutor to apply for a warrant if he or she can produce evidence to support an allegation. Procedures already in place provide for the courts to consider any application on its merits.

“The Home Secretary is currently considering amendments to the legislation regarding applications for arrest warrants by private prosecutors in relation to offences which require the consent of the Attorney General to prosecute.”

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