Iran's Supreme Leader Ayatollah Ali Khamenei has ordered President Mahmoud Ahmadinejad to dismiss his choice to serve as vice-president, state TV says.
Appointing Esfandiar Rahim Mashaie was "against your interest and the interests of the government", the ayatollah wrote to Mr Ahmadinejad.
State news agency Irna later reported the dismissal had gone ahead, said AP.
Mr Mashaie had caused controversy in 2008 when he said Iranians were friends with the Israelis.
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Mr Ahmadinejad, who is known for his own outspoken views against Israel, has previously defended Mr Mashaie, calling him modest and loyal to Iran's Islamic system.
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The row over Israel broke out last year when Mr Mashaie, then minister in charge of tourism, was quoted as saying that Iranians were friends with the Israeli people, despite the conflict between their governments.
"Today, Iran is friends with the American and Israeli people," he said, according to the semi-official Fars News Agency. "No nation in the world is our enemy."
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