Under-fire FIA president Max Mosley has had an official invitation to visit Israel "withdrawn immediately".
Minister of Science, Culture and Sport, Galeb Majadle, acted after learning of the recent scandal involving Mosley.
He was accused by a newspaper of taking part in a "Nazi-style orgy". He denies his deeds had Nazi connotations.
The news comes on the day Mosley denied avoiding F1 races and confirmed he will be at May's Grand Prix in Monaco, where he has a home.
Majadle met Mosley this week at the inaugural Jordan Rally, but was unaware of the scandal surrounding the 68-year-old Briton.
His ministry issued a statement on Friday claiming that "his invitation was not intended to be personal to Mosley himself, but rather to the representative of the FIA as a global organisation".
"I fully understand the minister's position"
He was not at the Bahrain GP on 6 April, after the Gulf state's rulers made clear his presence would not be welcome.
And some critics suggested his absence from this weekend's Spanish GP was to avoid any potential embarrassment to the King of Spain.
But Mosley said he never had any plan to attend the Barcelona event and insisted he would be present at Monaco in May.
"I never had any intentions of going to Barcelona, because I had nothing to do there," he said, despite the fact that the FIA launched an anti-racism campaign at the Spanish circuit this week.
"I only went to one complete F1 race last year. That was Monaco, and that was because I live there."
"I will be going to the Monaco GP [in May]. I live there."
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"The FIA is grateful to Galeb Majadle for extending an invitation to visit Israel.
"The FIA is delighted with the recent legalisation of motor sport in the country and intends to offer the minister every assistance in what promises to be a major addition to motor sport in the region.
"The FIA understands the circumstances under which the minister's invitation has now been withdrawn."
In the statement, Mosley was quoted as saying: "I fully understand the minister's position and look forward to resuming contact with him when the News of the World's deliberate and calculated lies have been comprehensively refuted."
Mosley is suing the News of the World for unlimited damages, but the newspaper has repeatedly said it stands by its story.
Former champions, several car manufacturers, and some FIA members have called for Mosley to quit. Mosley has said he will not seek another term beyond October 2009 - if he survives a vote of confidence.
That ballot will take place at an FIA general assembly in Paris on 3 June, nine days after the Monaco GP.
"My inclination is to stand and fight," he said. "If they wish me to continue, I will continue, if they don't, I'll stop."