Argentinian striker, Gonzalo Higuaín, speaking on Tuesday said: "They’ve finally done the right thing."
The friendly was to be Argentina’s last before they start their World Cup campaign in Russia against Iceland on 16 June.
Reports said that the Israeli prime minister, Benjamin Netanyahu, had called the Argentinian president, Mauricio Macri, to ask him to persuade the team not to cancel their visit.
However, Israel Radio quoted an unnamed diplomatic official who said the chances of salvaging the fixture were very slim.
The friendly between Israel and Argentina had attracted huge interest among Israeli fans, mainly because of Lionel Messi’s planned participation.
Palestinians celebrated the cancellation. People in blockaded Gaza strip cheered, and in Ramallah in the occupied West Bank, the Palestinian FA issued a statement thanking Lionel Messi and his colleagues for cancelling the game.
The statement said: "The Palestinian FA thanks Argentina’s players led by star Messi for refusing to be used to serve a non-sporting goal."
However, the status of Jerusalem al_Quds is highly sensitive. The match was originally planned to be played in Haifa but Israeli authorities contributed funding for it to be moved to Jerusalem al_Quds, alarming Palestinians further following the United States president Donald Trump’s recognition of the city as Israel’s capital. The US embassy was moved to al-Quds last month.
The cancellation is just one more obstacle for Argentina, whose World Cup preparations have been troubled this time around.
Argentina suffered a 6-1 defeat by Spain in a friendly match in March of this year, and lost their first-choice goalkeeper, Sergio Romero, to injury.
Argentina will face Iceland, Nigeria and Croatia in what is considered to be a difficult group in the tournament.
