The Web search leader said in a statement it seeks to establish partnerships with Israeli institutes and universities.
Israel is considered one of the world's biggest high-tech centers and has large operations belonging to high-tech giants such as Intel, Motorola, Microsoft and IBM.
The Tel Aviv office will be headed by Yossi Matias, a scientist and expert on algorithms, databases and Internet technologies.
Matias is on leave from his faculty position at Tel Aviv University and was previously a research scientist at Bell Laboratories.
Google's centre in Tel Aviv adds to the recent opening of its Haifa center in northern Israel.