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The new legislation speaks of Israel as the historical homeland of the Jews and says that they have a "unique" right to self-determination. It also revokes the long standing status of Arabic as an official language alongside Hebrew.
Zouheir Bahloul, of the opposition Zionist Union party, said that he could not cope with his grandson that he remained a member of the same chamber that pbaded the law.
"I resign from the Knesset," he told Reshet TV, referring to the Israeli parliament.
"The law of the nation-state constitutionally withdraws the Arab population from the path of equality in Israel," he said in Hebrew.
"Should I sit on the fence? Do I have to legitimize this extremist, racist and destructive parliament?" Bahloul said his resignation would officially take effect at the September parliamentary recess, but he has pledged not to reconsider in the meantime.
"I faithfully promise that I will not come back," he said. After the adoption of the law at the beginning of the month, Arab deputies called the legislation "racist" and tore copies of the bill in the Knesset House.
Arab citizens make up 17.5% of the more than eight million inhabitants of Israel.
The law makes no mention of the equality and democratic character of Israel, implying that the country's Jewish identity takes precedence.
The leaders of the Druze Arab community of 130,000 men, who, unlike Muslims and Christians, are subject to the military plan, challenged the law in the country's Supreme Court.
Yesterday, Prime Minister Benjamin Netanyahu met with the Israeli Druze spiritual leader Sheikh Muafak Tariff and a retired Druze general.
"Prime Minister Netanyahu has made no commitment and has declared that he will continue to hold consultations," the prime minister's office said in a statement.
Also present at the meeting was Minister of Communications Ayoob Kara, a member of Netanyahu's right-wing Likud party.
He voted in favor of the law and has since received death threats.
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