Israel hopes of reaching the European 2016 play-offs were quashed as they were beaten 3-1 by Belgium in Brussels on Tuesday night.
Having won their first three games of the qualifiers, Israel went into the game needing at least a point, whilst needing a favourable result in the match involving Cyprus and Bosnia, but neither match went their way.
Israel's goal led a charmed life in the first half with Mertens and Lukaku missing open goals, while Israel threatened rarely, with Eran Zahavi's curling free-kick striking a post.
The visitors showed little ambition on the night, playing with 11 men behind the ball throughout, and the only surprise was that it took Belgium 64 minutes to break the deadlock.
Mertens made amends for his earlier blooper with a sharp finish past Ofir Marciano.
Israel needed a goal more than ever now but manager Eli Guttman did not change things until it was too late.
Manchester City's Kevin De Bruyne effectively ended Israel's chances with a dipping shot after 78 minutes that again beat Marciano at his near post.
Chelsea's Eden Hazard added a third six minutes later before Tomer Hemed grabbed a consolation five minutes from time, glancing home a cross from Zahavi with his head.
Belgium's victory confirmed them as group winner, with Wales progressing as runners-up and Bosnia moving into the play-offs.
GROUP B FINAL STANDINGS
1. Belgium Pl. 10, Pts. 23
2. Wales Pl. 10, Pts. 21
3. Bosnia & Herzegovena Pl. 10, Pts. 17
4. Israel Pl. 10, Pts. 13
5. Cyrpus Pl. 10, Pts. 12
6. Andorra Pl. 10, Pts. 0