Sydney Muslim leaders will boycott a Ramadan event hosted by Premier Mike Baird over pro-Israeli comments by the state's Community Relations Commission (CRC) chief.

Community groups have demanded the CRC's Vic Alhadeff be sacked after he sent an email backing Israel's efforts to "defend its citizens" in its fight against "terrorists in Gaza".

The email included a "frequently asked questions" fact sheet from Israel's Ministry of Foreign Affairs about its offensive in Gaza.

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