United Nations Secretary-General Mr Kofi Annan has decided not to reappoint the head of the UN relief agency for Palestinians after a campaign against him by Israel and the United States.
Mr Peter Hansen, a Dane, has led the UN Relief and Works Agency since February 1996 and had signalled he was willing to serve a fourth three-year term at its helm.
In the past he has drawn angered Israel by accusing it of the wanton destruction of Palestinian homes.
The United States, the programme's biggest single donor and one of 10 countries on its advisory board, argued against the reappointment on grounds he had served long enough and that the agency needed new blood.
The Bush administration made clear it would be hard to keep up the $120 million annual US contribution to the agency if Mr Hansen were reappointed due to unhappiness over him in Congress.
"It was clear that he wasn't renewed because of US and Israeli calls for his head," said one official.
The United States was the only member of the advisory board opposing Mr Hansen's reappointment, the official said, noting that European Union and Arab nations backed him for a new term.
Some UN sources said Hansen's departure had been in the works for some time as Israeli unhappiness with him built up over the years. Israel has repeatedly called for his resignation.