CAS should instruct Fifa to allow a vote on the matter at the Fifa Congress next June in Moscow, the Palestinian FA has said.
“Fifa has clearly violated its own regulations,” Palestinian FA president Jibril Rajoub has said.
“The Israelis are organizing league matches on land that is not Israeli land. Even the Israeli league would not dare say that this is their land. Fifa is making decisions as if it were a fascist or Nazi government."
The Israel FA has declined to comment on the CAS hearing, saying that while it is the subject of the court case, the petition only involves the Palestinian FA and Fifa.
Fifa President Gianni Infantino said he would abide by any CAS ruling.
The Palestinians have been trying for many years to get the Fifa Congress to kick Israel out of international football as part of the diplomatic drive to isolate the country.
They had little success with the claim that Israel was impeding the passage of players between Gaza and the West Bank.
But recently they have adopted a more formidable two-stage tactic: pressuring Fifa to order the Israel FA to expel the five West Bank teams, and then suspend Israel itself if it does not comply.
This approach was boosted by Fifa's decision not to let Russian teams in the Crimea, seized from Ukraine, play in Russian leagues.
The CAS will hear the case in January.
