Israel's PM has criticised Jeremy Corbyn over his presence at a ceremony said to have honoured the perpetrators of the 1972 Munich terror attack.
The Israeli Prime Minister also accused Corbyn of making a "comparison of Israel to the Nazis" in an extraordinary post on Twitter on Monday.
Mr Corbyn said Mr Netanyahu's claims about his "actions. are false".
Somehow it seemed to have escaped the leader of the British Labour Party - both in 2014, as it did in 1986 and again in 1991, that it was the terrorist murderers themselves who perpetrated the bloody violence in the first place that resulted in all those deaths, including those among their own ranks.
Labour said previously that Mr Corbyn had made clear he was paying his respects to the victims of a 1985 Israeli air strike on Palestinian Liberation Organisation offices in Tunis.
Dr Shtayyeh confirmed the intention of the event was simply to remember those killed in the 1985 airstrike.
Eleven Israelis were killed in Munich in 1972, when Palestinian militants took Israeli Olympic team members hostage at a hotel in an attack which played out over live television. A German policeman was killed in a shootout with the terrorists during a botched rescue attempt.
Asked who this wreath had been for, if they were not terrorists, Mr Corbyn replied simply that a wreath "was indeed laid".
Corbyn has admitted he "was present when [the wreath] was laid" but claimed he was "not actually involved" in any ceremony.
He added: "I was there because I wanted to see a fitting memorial to everyone who has died in every terrorist incident everywhere because we have to end it".
He said it was important to ensure "you can discuss and debate the relations between Israel and Palestine, the future of the peace process and, yes, make criticisms of the actions of the Israeli government in the bombing of Gaza and other places". "The only way to pursue peace is a cycle of dialog".
Israeli widows of the athletes killed by the terrorists decried Corbyn's "act of maliciousness, cruelty and stupidity", the Daily Mail reported.
In the video, Mr Corbyn said Palestinians had experienced "conditions in the West Bank, under occupation, of the very sort that will be recognisable by many people in Europe who suffered occupation during the Second World War".
"I stand with the tens of thousands of Arab and Jewish citizens of Israel demonstrating for equal rights at the weekend in Tel Aviv" Corbyn said.
UK Labour chief Jeremy Corbyn faces fresh criticism over anti-Semitism after photos reveal him laying a wreath at memorial for Palestinian terrorists. "Where is the apology?" "Jeremy did not honor those responsible for the Munich killings", the statement read.
But Corbyn's obvious hatred for Israel goes way back, as one can see by reading the rest of the article in the Morning Star, in which he wrote about the "the role global law can play in supporting the victims of occupation and the siege of Gaza" and the importance of the Palestinian Authority's "joining the ICC process" in order to "seek a special United Nations court to try war criminals" and his emphasis on the point that "foreign nationals serving in the Israeli Defence Force could become the subject of war crimes accusations following the bombing of civilian targets".
It comes amid a wider row about anti-Semitism in the Labour party.
Corbyn said today controversial version of the worldwide definition of anti-Semitism agreed by Labour's ruling body was the "most sophisticated" of any political party.
The dispute recently boiled over after the party proposed adopting a definition of anti-Semitism that differed from the one approved by the International Holocaust Remembrance Alliance.