Administrative detention allows for terror suspects to be held indefinitely without trial and is a power usually reserved for Palestinians.
Mr Ben David’s legal representation said he was the only Jewish-Israeli being detained under the rule.
Israeli human rights organisation B’Tselem reported that, as of December, all 464 other detainees are Palestinian.
Mr Ben David’s lawyer Adi Keidar said: “The Defence Minister’s decision to retract the order is appropriate, but it is not the final word.
“There must be a thorough examination of all of the administrative orders that are being issued, including distancing orders, which are issued offhandedly.”