The statement came after the 19-member UN Committee on Non-Governmental Organizations voted 12 to 3 in favor, with three abstentions, to recognize the PRC as a permanent NGO with access to many forums of the world body.
"Admitting an organization that identifies with Hamas to the list of UN organizations is handing a prize to terror and its operations, there is no other way to interpret this decision," Israel's newly appointed Deputy Foreign Minister Tzipi Hotovely said.
Supporting the PRC's application at the UN were Iran, Pakistan, Sudan, Turkey, China, Cuba and Venezuela, among other countries; the US, Uruguay and Israel voted against, while India, Russia and Greece abstained.
Meanwhile, the PRC has been quick to reject Israel's allegations as baseless.
"PRC will hand [in] a letter of protest to the United Nations… against the false allegations circulated by Israel," the group said, adding that it was "not affiliated to any Palestinian party including Hamas."
PRC also said that the group was "independent and dedicated to serve the cause of Palestinian refugees and their right of return."
The United States, Israel, Canada, Japan and the European Union have designates Hamas a terrorist organization.
More than 2,200 Palestinian civilians were killed and over 10,000 more were wounded in the 50-day military operation which was launched by Israel in the Hamas-ruled Gaza Strip in July; five Israeli citizens were also killed.