The official reason is that the iPad's wi-fi system is incompatible with Israel's wireless standard, and authorities claim it could damage the network, according to the Financial Times.
Apple has not commented on the ban, but this week announced that the international roll-out of the iPad will be delayed by a month because of high US demand.
Apple said it would not announce international pricing or start taking pre-orders until 10 May, indicating general availability only towards the end of the month.
Only a wi-fi version of the device has been released so far. A 3G version is expected to launch in the US at the end of April.
This story was first published by Computer Weekly