Charlyn Marie Marshall, better known by her stage name Cat Power, was to perform in Tel Aviv on Sunday.
But she tweeted on Friday that due to "much confusion" she felt she could not play for her Israeli fans and that she felt "sick in her spirit."
She had faced calls to boycott the Jewish state.
Elvis Costello and The Pixies have canceled their appearances, as did the British dance band Klaxon and the Gorillaz Sound System. Santana and Bjork also called off concerts, without explaining why.
Other musicians, such as Elton John, Paul McCartney and Madonna, have resisted the pressure.
Or Barnea contributed to this report