In a statement, Pixies said the decision was not reached easily and apologised for letting fans down.
They said: “We all know well the Israeli fans have been waiting for this visit for far too long.
"Events beyond all our control have conspired against us."
British groups the Gorillaz and the Klaxons have also withdrawn from the event. It follows the decision by Elvis Costello to cancel two shows in Israel for political reasons
Concert promoter Shuki Weiss, who organised a Madonna concert in Israel, called on the Israeli government to "fight against those who are doing everything they can to prevent artists from performing in Israel".
