The Irish carrier had claimed that Israel had been singled out because of its more rigorous security procedures but the Israel Airports Authority protested that there had been no change in its security procedures over the past week.
On Thursdsay, Ryanair backtracked on the policy.
In a statement, the airline said: "From Saturday, 20th January 2018, all customers on Ryanair flights to/from Israeli airports will be permitted to bring two free carry-on bags (one wheelie and one small) to the gate, subject to airport security permitting them to do so."
"Priority customers will be allowed bring their two bags (one wheelie and one small) on board. Non-priority customers can bring their smaller bag on board and place their wheelie bag in the hold, free of charge, at the boarding gate. "
Ryanair flies routes to Ovda, near Eilat, and Tel Aviv Ben Gurion Airport from several European countries. It does not operate direct flights between Israel and the UK.