Argentina canceled on Tuesday a football friendly against Israel that was set to be held in Jerusalem.
The plans to hold World Cup warmup match had sparked outrage by pro-Palestinian groups.
A source at Argentina's football federation confirmed the cancellation of the international friendly scheduled to be played Saturday at Teddy Kollek Stadium.
Argentine striker Gonzalo Higuain confirmed the cancellation, telling ESPN: "They've finally done the right thing. Health and common sense come first. We felt that it wasn't right to go."
The head of the Palestinian football association, Jibril Rajoub, had urged Argentina to cancel the match.
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 creation in 1948.
Rajoub has long urged FIFA to expel Israel from the international football federation, citing Israeli travel restrictions on Palestinian football players and because Israel maintains teams in West Bank settlements.
The visit of twice world champions Argentina has attracted huge interest among Israeli fans, mainly because of Barcelona great Lionel Messi's planned participation.
Palestinians celebrated the cancellation. In Gaza, people cheered and in Ramallah in the West Bank, the Palestinian FA issued a statement thanking Messi and his colleagues for canceling the game.
"The Palestinian FA thanks Argentina's players led by star Messi for refusing to be used to serve a non-sporting goal."
The cancellation came hours after pro-Palestinian activists staged a demonstration in front of the sports complex in Barcelona where Argentina is preparing ahead of the World Cup. Some waved the white and sky-blue striped jersey of Argentina's national team stained with red paint resembling blood.
Argentina opens its Group D campaign in Russia against Iceland on June 16. It then plays Croatia on June 21 and Nigeria on June 26. It is unclear whether Argentina will play another warmup, or if it will arrive to Moscow ahead of schedule.
Israeli news site Ynet reported that Prime Minister Benjamin Netanyahu had called Argentine president Mauricio Macri and urged him to intervene.
Officials at the Argentine president's office declined to comment on the issue.
Israeli Defense Minister Avigdor Lieberman on Wednesday slammed the Argentina national football team for canceling the match, calling it a surrender to hate.
"It's a shame that Argentina's footballing nobility did not withstand the pressure from Israeli-hating inciters," he wrote on Twitter in the first response from an Israeli cabinet minister.
The Argentina about-turn comes at a time of fierce criticism of the Israeli army over the use of lethal force against Palestinian protesters on the Gaza Strip border with Israel.
Gazans have since March 30 been holding border protests demanding the return of Palestinians to land they fled or were expelled from during the 1948 war surrounding Israel's creation, now inside the Jewish state.
At least 125 Palestinians have been killed by Israeli gunfire on the frontier since March 30.
Israel captured east Jerusalem in the 1967 Mideast war and later annexed the area in a move not recognized by the international community. The Palestinians claim east Jerusalem as the capital of a future state.
The Palestinians have also been outraged by President Donald Trump's recognition of Jerusalem as Israel's capital and his decision to move the US Embassy to the city.
