Maria Strizzolo discussed Sir Alan Duncan with political officer Shai Masot, prompting an apology from the Israeli ambassador.
A UK civil servant caught on camera discussing with an Israeli official how to "take down" a British Government minister has resigned.
Maria Strizzolo has left her job with the Skills Funding Agency after she was filmed discussing Foreign Office Minister Sir Alan Duncan with senior Israeli political officer Shai Masot.
In a secretly-recorded conversation Mr Masot said Sir Alan was causing "a lot of problems".
At the meal with Mr Masot and Ms Strizzolo was an undercover reporter posing as a pro-Israel graduate activist.
Mr Masot asked Ms Strizzolo: "Can I give you some names of MPs that I would suggest you take down?"
She replied that all MPs have "something they're trying to hide".
Mr Masot responded by saying: "I have some MPs... She knows which MPs I want to take down... the deputy foreign minister".
The Israeli ambassador to the UK Mark Regev apologised for the comments.
The conversation was recorded at a restaurant opposite the Israeli Embassy in Kensington during October last year, as part of an investigation by broadcaster Al Jazeera.
Before she resigned, Ms Strizzolo told the Mail On Sunday that her words to Mr Masot were "tongue-in-cheek and gossipy".
She added: "Any suggestion that I...could exert the type of influence you are suggesting is risible."
She said she knew Mr Masot socially but that she had never worked with him or had any "political dealings" with him "beyond chatting about politics, as millions of people do, in a social context".
Sir Alan, who has been critical of Israeli government policies, was seen as more of a problem than Foreign Secretary Boris Johnson who was "basically good", according to Mr Masot in a transcript of the conversation.
The Israeli Embassy said in a statement that it "rejects the remarks concerning Minister Duncan, which are completely unacceptable; the comments were made by a junior embassy employee who is not an Israeli diplomat, and who will be ending his term of employment with the embassy shortly."