Sydney Muslim leaders will boycott a Ramadan event hosted by Premier Mike Baird over pro-Israeli comments by the state's Community Relations Commission (CRC) chief.
Community groups have demanded the CRC's Vic Alhadeff be sacked after he sent an email backing Israel's efforts to "defend its citizens" in its fight against "terrorists in Gaza".
The email included a "frequently asked questions" fact sheet from Israel's Ministry of Foreign Affairs about its offensive in Gaza.
Critics say Mr Alhadeff's role as the CRC chairman is now untenable and he must be sacked.
Mr Baird has acknowledged Mr Alhadeff's comments were "inappropriate" but has so far resisted calls to dismiss him.
In a meeting hosted by Arab Council Australia on Tuesday, community leaders voiced outrage that Mr Baird had backed Mr Alhadeff.
They also vowed to boycott the premier's Ramadan event on Thursday night, which is organised by the CRC.
"The premier's dinner is the first of many events that will be shunned by the very people that it ostensibly targets," the council said in a statement.
Former state ethnic affairs commissioner Ahmad Shboul said there was "no way" community members would break bread at the CRC event while the chair still sits at the head of the table.
"No faith would condone the position that he has taken, and it would be grossly hypocritical to pretend that we are celebrating harmony," Dr Shboul said.
More than 600 Palestinians, mostly civilians, have died since fighting erupted on July 8. Israel has lost 27 soldiers and two civilians during the conflict.