JERUSALEM, Sept 1 (Reuters) - Israel said on Wednesday that a U.S. plan to reopen its consulate in Jerusalem that has traditionally been a base for diplomatic outreach to Palestinians is a "bad idea" and could destabilize Prime Minister Naftali Bennett's new government.

The prior administration of President Donald Trump signaled support for Israel's claim on Jerusalem as its capital by moving the U.S. embassy there from Tel Aviv. It later subsumed the consulate, in west Jerusalem, in that mission.