Israel missed out on promotion to the World Group despite claiming two wins in the Federation Cup Europe/Africa Group 1 in Hungary.
Victories over Austria and Slovenia counted for little after Israel slumped to a 3-0 defeat against Ukraine.
Shahar Peer was the hero against Austria and Slovenia — winning her singles rubber in each contest and teaming up with Julia Glushko to win both doubles matches.
Peer said: "We played well as a team and our aim was to avoid relegation, which we achieved."