The 21-year-old singer was scheduled to perform for Tel Aviv Convention Centre on June 5 as a part of her 2018 world tour, according to Billboard.
In a statement to the organisers, through Jerusalem Post's Amy Spiro, Lorde announced her decision to cancel her show in the capital.
"I've received an overwhelming number of messages and letters and have had a lot of discussions with people holding many views, and I think the right decision at this time is to cancel the show.
Lorde said it was her "dream" to visit Tel Aviv and she hopes it would come true soon.
"I'm truly sorry to reverse my commitment to come play for you," she added.
On December 20, the singer had replied to authors Nadia Abu-Shanab and Justine Sachs penned an open letter on New Zealand site The Spinoff titled "Dear Lorde, here's why we are urging you to boycott Israel".
Lorde wrote back, "Noted! Been speaking with many people about this and considering all options. Thank you for educating me I am learning all the time too.
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