A senior Israeli minister says top parliamentarians met to discuss a European funding ban on institutions that operate in areas Palestinians want for their future state.

Deputy Foreign Minister Zeev Elkin told Army Radio Tuesday that Prime Minister Benjamin Netanyahu ordered the "long discussion" Monday.

EU guidelines announced this year ban the funding of institutions that have any operations beyond Israel's pre-1967 borders. Elkin said the territorial clauses are problematic because of their political implications.

Israel is especially worried about losing access to Horizon 2020, a seven-year, Europe-wide research grant program that starts in 2014 with an estimated budget of 80 billion euros ($107 billion).

Israel needs to decide next month if it wants to sign on to the program or risk losing funding and cooperation opportunities with the EU.