The United Nations General Assembly on Friday extended by an overwhelming majority the mandate of the United Nations Relief and Works Agency (UNRWA) for a further three years despite the US decision to suspend its financial contributions to the agency.

UNRWA's mission was to be extended until June 30, 2023 by 169 votes, nine abstaining and opposition from Washington and Tel Aviv.

The agency has been struggling with its budget since last year when the United States, the largest donor, suspended aid totaling $ 360 million annually, accusing the agency of mismanagement and incitement against Israel.

Palestinian President Mahmoud Abbas welcomed the decision of the General Assembly, and considered it "a clear message by the international community that the international legitimacy resolutions are not compromising or blackmailing."

"Having the UN resolution overwhelming majority is evidence of the entire world standing with our people, its historical rights and its just cause," Abbas said.

The Islamic Resistance Movement (Hamas) also praised the vote, considering it a defeat for the United States and a failure for its attempts to pressure the UN member states against UNRWA.

Founded in 1949, UNRWA provides education, health, and relief services as well as housing and microfinance assistance to more than five million registered refugees in the West Bank, Gaza Strip, and East Jerusalem, as well as Jordan, Lebanon and Syria.