The match, South Americans' final warm up game before the World Cup in Russian Federation next week, was scheduled to be played in Jerusalem's Teddy Stadium on June 9, was highly anticipated in Israel with tickets selling out in 20 minutes.
Palestinian FA chief Jibril Rajoub had helped spark the controversy with his claims that fans should burn Messi photos and shirts if the Argentina star faced Israel in Jerusalem.
"The Embassy of Israel regrets to communicate the suspension of the match between Israel and Argentina", a statement said, referring to "threats and provocations" against Messi.
Argentina has reportedly cancelled a World Cup warm-up match against Israel under political pressure over Israel's treatment of Palestinians in Gaza.
India’s growth likely topped 7% again in January-March quarter
He said he did not see any correlation between oil prices and GDP growth and the fiscal deficit would remain as per the targets. The country's economic growth was marginally higher at 6.9 per cent in 2016.
Information from The Associated Press and Reuters was used in this report.
The Culture and Sport Ministry's director general, Yossi Sharabi, said Wednesday morning that "a final effort" was still being made to hold the game as planned.
Reports said that Israeli prime minister Benjamin Netanyahu had called Argentinian president Mauricio Macri to ask him to persuade the team not to cancel their visit.
Although the stadium that was slated to host the match is in west Jerusalem, Rajoub had complained that it is situated in a neighborhood built on the site of a former Palestinian village destroyed during the war surrounding Israel's independence 70 years ago. Jorge Faurie did not confirm the game had been axed, but told reporters in Washington on the sidelines of the Organization of American States meeting that he believed players had been reluctant to travel to Israel to play.
"But we have a good group of players and the Argentine team is always going to be a candidate to win, it doesn't matter how we get there".
LeBron James: No ceiling for my prime playing years
It will be James' 8th consecutive trip to the Finals , and the 4th consecutive Finals matchup between the Cavs and the Warriors . That is a tall order considering the defending champions have scored at least 100 points in 13 of their 17 playoff games.
Argentine media also reported the cancellation.
There was no initial reaction from the Israeli FA or from Israeli politicians.
The news was met with cheers in Gaza, where at least 120 Palestinians were killed by Israeli forces during recent protests.
As part of the campaign, Mohammed Khalil, a Palestinian footballer, directed a message toward Argentina's beloved forward Lionel Messi.
Russians die in IS fight in Syria
It said the jihadists had targeted a group of Syrian and allied Russian troops in Deir Ezzor province on Wednesday. The Russian ministry said that the dead were military advisers attached to a Syrian army unit in the Deir el-Zour.