UEFA cited "the tense security situation in the region" for postponing Thursday's match in Haifa between Hapoel Kiryat Shmona and Spanish side Athletic Bilbao.
UEFA said a decision on rescheduling the match will be made by the end of the week.
UEFA said the decision didn't affect its plans to meet in Tel Aviv next Wednesday to conduct the draw for the Under-21 European Championship.
Israel is to host the eight-nation tournament next June. UEFA President Michel Platini is expected to attend the draw along with officials from competing nations including England, Germany, Italy, Russia and Spain.
Athletic Bilbao had been scheduled to fly to Israel on Wednesday for the group-stage Europa League match.
Athletic spokesman Xavier Fernandez said UEFA called the club and informed it that "due to the circumstances currently prevailing in Israel, the match was not to go ahead."
"As a consequence we have not flown out there," Fernandez told The Associated Press.
UEFA has been monitoring the security situation since an Israeli offensive in Gaza flared last week.