On the eve of a campaign by Oxford University to raise £1 billion, the institution has so alienated one of its most generous donors that he is threatening to sever his ties with it.

Zvi Meitar, who is one of Israel’s richest men and who now lives in London, accused the university of “ridiculous”, “foolish” and “offensive” behaviour that had left him and his family “distraught”.

Meitar’s anger was sparked by Oxford’s rejection of his offer of a £1m sculpture he had bought from Sir Elton John and which the government has described as being of “outstanding importance”.

Meitar, a 74-year-old lawyer, said that as a result of the rejection at least £2m worth of gifts to Oxford were in question and he was considering giving up donating to the university.

“There was a big future,” he said. “Now the whole thing is in question.” He added: “I don’t think anybody [at Oxford] really cares about this. It’s sad. It’s not only sad, it’s ridiculous, it’s foolish.” Meitar’s comments will raise concerns about the university’s treatment of the philanthropists on whom its new fundraising campaign will depend.

The appeal, Oxford Thinking, will be launched on May 28 at the British Academy in central London by Lord Patten, the university’s chancellor, and John Hood, the vice-chancellor. It will be chaired by Dame Vivien Duffield, former deputy chairman of the Royal Opera House and regarded as one of Britain’s most successful arts fundraisers.

Meitar emphasised that he enjoyed excellent relations with Hood – who had apologised for the statue affair – and with senior officials at the Bodleian Library. He blamed members of committees he had never met for rejecting the donation.

Meitar’s four-ton 10ft statue was carved in the 18th century by Sir Henry Cheere in memory of Sir George Cooke, a Tory MP.

A spokeswoman for Oxford said the university had tried to find a suitable position for the statue and regretted having to reject it. She added that Meitar was a “highly valued benefactor” with whom Oxford wanted to continue its “extremely cordial relations”.

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