PARIS (AFP) -- United Nations cultural agency UNESCO has been forced to suspend all its spending programs until the end of the year after the United States withdrew its funding, its director general said Thursday.

In an address to UNESCO diplomats, Irina Bokova said the agency faces a $65 million funding shortfall and would have to halt all of its activities, following a row with Washington over Palestinian membership.

"This deficit corresponds to the sum due from the United States for the year 2011. The United States have a habit of paying their contribution at the end of the year for reasons of their own budget calendar," she said.

"We will not receive this sum. We will therefore have to take radical measures, and we will need to take them now, at this general conference.

"I have suspended the entirety of our undertakings. I have suspended the execution of our programs, during our review process, until the end of the year," she explained, promising her office would review the entire budget.

A UNESCO spokesperson said priority programs would be maintained, and there were no plans for job losses at the organisation for the time being.

Last month, the United States and Israel pulled the plug on their UNESCO funding after members voted to admit Palestine as a full member, a move seen as a step towards its eventual recognition as a UN member state.

US legislation dating from the 1990s requires the US administration, Israel's staunchest ally, to withdraw funding from any UN agency that admits Palestine as a full member before a final peace deal is reached with Israel.

Palestinian leaders have also asked the UN Security Council for recognition, but the request is still being examined and Washington is all but sure to veto it.

Bokova said that by reviewing its contractual commitments, personnel expenses and travel and communications costs, UNESCO could probably generate savings of up to $35 million for this year's budget.

The agency would then use its $30 million working capital fund to cover the remainder of the $65 million shortfall, but that would leave its finances in a fragile state at the start of 2012.

For the coming year, the absence of US funding meant UNESCO was facing a $143 million shortfall, Bokova said, adding the agency would prioritise its activities and reduce operating expenses further if needed.

US President Barack Obama is talking to members of Congress about funding for UNESCO, but faces fierce opposition in an era of tight budgets, especially from Republican lawmakers.

Bokova appealed for additional voluntary funding from other member states to bolster agency finances, and said she was launching an Emergency Multi-Donor Fund for core priority programmes.

The government of Gabon said on Thursday it would donate $2 million to the agency to help deal with the immediate shortfall.

UNESCO also launched an online appeal for donations from the general public, which it said would go towards the emergency fund.

"I know this is not a long-term solution, but it will provide the organization with some breathing space to plan rationally within new conditions," Bokova said