The reason for the decision is said to be that the media company spreads "false content" and that it can threaten Israeli soldiers, according to Israel.
Al Jazeera staff remaining in the country, who are not deemed to be actively producing content, will be allowed to keep their Israeli press cards.
It is not mandatory to have a press card to work as a journalist in Israel, but without it, it is virtually impossible to gain access to, among other things, the parliament.
Al Jazeera has previously denied the Israeli allegations and simultaneously accused Israel of systematically targeting the company's employees in the Gaza Strip.
A number of Western countries and international organizations have previously condemned Israel's actions against Al Jazeera.