Israel is allowed to participate in the football tournament at the OS in Paris.
It is clear since Fifa chose to postpone the decision to ban Israel from international football due to the conflict with Hamas.
It was in May that the Palestinian Football Association demanded sanctions against Israel and that they should be expelled from the international federation.
The Palestinian Association accused Israel of racism, human rights violations, and discrimination within the football league and believes it is a breach of Fifa's statutes.
Fifa, the world governing body of football, was set to make a decision on Saturday at an extraordinary council meeting, after requesting an independent legal assessment.
However, late on Thursday evening, Fifa announced that they had postponed the decision, as "more time is needed to complete this process with due care and thoroughness" – which means the decision will not be made until after the OS has concluded.
Israel has been drawn into a group with Japan, Mali, and Paraguay in this year's OS football. The final will take place on August 9.