A letter sent to Corbyn, who is avowedly pro-Palestinian, also stated that his "public hatred" of Israel's state policies acted as a deterrent to any constructive relations.
He proceeded to claim that it was Corbyn's responsibility "to acknowledge the hostility that you have shown to the Jewish community and the anti-Semitic statements and actions you have allowed as leader of the Labour Party UK".
Gabbay wrote that he chose to take the step ahead of Holocaust Martyrs' and Heroes' Remembrance Day, which recalls the horrors of antisemitism in Europe and Israel's commitment to combating antisemitism of all forms and in all places.
Israeli Labour is part of the "Zionist Union" faction in Israel's Knesset that controls 24 of the legislature's 120 seats.
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But Rousey , who was watched by her former UFC boss Dana White, stepped in for the save to deny Triple H and his wife victory. In the final moments of the match, both Stephanie and Triple H tried to deliver pedigree to Angle and Rousey, respectively.
"A very powerful signal of the anger and deep unease felt by Israeli Labour politicians at increasing antisemitism in the UK Labour party and Jeremy Corbyn's inability to understand his role allowing antisemitism to flourish and his unwillingness to properly tackle it".
Britain's Labour Party leader Jeremy Corbyn speaking after he retained his parliamentary seat in Islington north London, June 9, 2017.
What anti-Semitic incidents have happened in Labour under Corbyn's watch?
He added: "I think she's a great actress, a great comic and I hope she reflects on what she said".
The announcement was made via a statement by a party spokesperson, who quoted a letter written by leader Avi Gabbay to Corbyn.
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I don't want to lose and we are sad for the fans, but the way we played, even after 3-2, the way we play was outstanding". But when you play against Liverpool or in Europe, when you have that momentum, you have to close the door.
There are some areas where the two parties will continue to work together, he added, but "we can not retain relations with you, Leader of Labour Party UK".
James Sorene, CEO of Israel and Middle East think tank BICOM said: "The Israeli Labour Party has been close to its United Kingdom sister party for decades. LFI's relationship with the Israeli Labour party remains unaffected and we will continue our close cooperation". It's deeply disappointing that the fight against antisemitism within the UK Labour Party has come to this.
Corbyn is facing intensifying criticism from outsiders and some of his own members for what is viewed as a failure to address reports of anti-Semitism involving some Labour supporters.
Last week, Mr Corbyn criticised the shooting of Palestinians during protests on the Gaza border.
Following a demonstration organised by the Board of Deputies and Jewish Leadership Council, the two community organisations agreed to meet the Labour leader to discuss the ongoing issue of anti-Semitism.
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Will The Dead Man come out his apparent retirement and answer Cena's challenge at Wrestlemania 34? Kurt Angle and Ronda Rousey vs. There's going to be a lot packed into the three-hour show so let's get down to the live results for Monday Night RAW on April 2.