The Israeli Foreign Ministry says it is seeking a new candidate for ambassador to Brazil, ending a standoff with Brasilia over a nominee who was a prominent Israeli settler.

Israel nominated Danny Dayan in August. Dayan is former chairman of a council representing West Bank settlers.

In January, the Brazilian president's adviser on foreign affairs Marco Aurelio Garcia said Dayan's nomination was "a false step" by Israel. Brazil opposes West Bank settlements.

Israel captured the West Bank, east Jerusalem and Gaza Strip — territories claimed by the Palestinians for their future state — in the 1967 Mideast war. While Israel pulled out of Gaza in 2005, nearly 600,000 Israelis now live in the West Bank and east Jerusalem.

In 2010, Brazil recognized the state of Palestine along the pre-1967 lines.