The University of Galway says contractual obligations mean it cannot back out of a project involving the Technion Institute of Technology in Israel.
The university is the co-ordinating partner in an ongoing research programme that involves the Haifa-based institution.
The ASTERISK research project is looking at ways to produce hydrogen from seawater. It is co-funded by the EU and co-ordinated by the University of Galway.
The Technion Institute is one of a number of third-level institutions involved.
The agreement has been criticised by human rights campaigners, given the ongoing Israeli attacks on Gaza and Technion's role in developing what it terms, "defence and security technologies".
Last year, the university announced a review of its links with Isreal and Palestine, in light of the continuing conflict.
That was followed by a Human Rights Impact Assessment (HRIA) of research collaborations and partnerships.
In an update to staff this morning, the interim President of the University, Peter McHugh, said the ASTERISK research project had been approved before the HRIA process commenced.
While the university management team wanted to apply the assessment retrospectively to the research programme, it has been given legal advice that it cannot do so.
As a result, it said it must continue its involvement in the project, "premised solely on the ongoing contractual obligations".
The update went on to say that the university will not seek or agree to participate in any new research agreements "involving direct Israeli partners, until further notice".
Professor McHugh said the university wanted the EU Foreign Affairs Council to complete a wider review of Israel’s participation in European research programmes as soon as possible.
He said the institution is currently facilitating 14 students from Gaza who are studying in Galway at present.
