Oscar-winning actress Natalie Portman said she chose not to attend a ceremony in Israel to accept a million-dollar prize because she did not want to be seen as supporting Prime Minister Benjamin Netanyahu, who was scheduled to speak at the event.

Portman's decision, which she said was 'mischaracterised by others', had caused a minor backlash in Israel on Friday after organisers of the prestigious Genesis Prize award ceremony said they cancelled the prize-giving.

The group had quoted a representative of Portman who said: '[R]ecent events in Israel have been extremely distressing to her and she does not feel comfortable participating in any public events in Israel' and that 'she cannot in good conscience move forward with the ceremony'.

This led many to interpret her decision as connected to the international criticism of Israel for its military response to Palestinian protests on the Gaza-Israel border during the last few weeks, in which 35 Palestinians were killed.

Rachel Azaria, a member of the centrist Kulanu party, part of Prime Minister Benjamin Netanyahu's governing coalition, said her stance should constitute a 'warning light' to Israel.

She tweeted: 'She's speaking for many in US Jewry, especially the young generation. Losing them might be too high a price.'

Israel has said it is doing what it must to defend its borders.

Some ministers in Netanyahu's right-wing government said Portman appeared to have been manipulated by the Palestinian-led international campaign to boycott Israel.

Additional reporting by Reuters.