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Jeremy Corbyn has vowed to continue talking to terrorist organisations Hamas and Hezbollah, in comments that threaten to further destabilise his leadership ahead of the local elections.
The Labour leader refused to denounce the groups in the wake of calls from Jewish leaders, the Israeli Ambassador and members of his own party to distance himself from those with anti-Semitic views.
He has previously referred to the organisations as "friends", despite both being declared terrorist groups by the EU and America.
Mr Corbyn's handling of the row has led to claims that John McDonnell, the shadow chancellor, is waiting in the wings to launch an "organised takeover" as leader if Labour MPs launch a coup.
Sources claim an agreement has been struck between the two men in a bid to preserve the left-wing motives of Mr Corbyn's leadership.
It comes in the wake of a warning from Labour donor Michael Foster that no-one of Jewish faith has given money to the central party since Mr Corbyn took office because those around him "vilify" Jews and "shout down" people who attempt to defend Israel.
Mr Foster accused Mr Corbyn of having "ignored the issue" of anti-Semitism, adding: "I think I'm right in saying I don't think there is a Jew in Britain who has given money centrally to the party since Jeremy Corbyn's selection because prior to his selection and since his selection we have asked and asked for this to be dealt with."
Labour MPs now fear that the handling of the row will further damage the party's chances at the local elections and the London Mayoral race this week after it emerged experts think Labour could lose over 150 seats. Sources warn such a devastating loss would prompt calls for Mr Corbyn to resign.