It's not as clear cut as the headline implies, but for what it's worth:

Sir Paul McCartney to rock Israel 43 years after ban
Last Updated: 6:47AM BST 18/07/2008

Sir Paul McCartney is set to make pop history by playing his first gig in Israel, 43 years after the Beatles were banned from performing in the country.

In 1965 McCartney, 66, and his fellow Beatles were turned away by Israel's then education minister, David Zarzevski, who thought that a show by the band might corrupt the minds of the nation's youth.

However earlier this year, Israel's ambassador to Britan sent apology letters to McCartney and drummer Ringo Starr - as well as the relatives of deceased Beatles George Harrison and John Lennon - inviting them to play as part of the country's 60th birthday celebrations.

Ron Prosor, apologised for the "misunderstanding" and wrote: "There is no doubt that it was a great missed opportunity to prevent people like you, who shaped the minds of the generation, to come to Israel and perform."

"We missed a chance to learn from the most influential musicians of the decade."

McCartney, 66, is now said to be on the verge of signing a deal to play to 250,000 in Tel Aviv this September. He will either play at the nation's football station Ramat Gan or put on an open air gig in Hayarkon Park.

A source reveals, "Paul is desperate to put Israel on the map of places he's performed.

"He is pushing to make it happen, although the security issues are a real threat."

http://www.telegraph.co.uk/new.....years-after-ban.html

Should he have had plans to play there at all, they're cancelled.

Why are his plans cancelled?

Quoted from Jane

Why are his plans cancelled?

This isn't very helpful, but for what it's worth....

McCartney cancels planned TA concert
By Haaretz Staff
August 14

Paul McCartney will not be performing in Israel next month as planned, Globes reported yesterday.

The superstar former Beatle was supposed to arrive in Israel for a single performance in late September before a projected crowd of 250,000. Sources close to the no-show show said recently that McCartney's manager was seen scouting a location in one of the large parks in central Israel.

The concert was reportedly slated to take place at Hayarkon Park in Tel Aviv or at Ramat Gan Stadium, and media reports last week said tickets would cost between NIS 600 and an unprecedented NIS 1500.

Producer Dudu Zerzevsky was working on bringing McCartney to Israel, but negotiations apparently reached a stalemate. Zerzevsky declined to comment.

http://www.haaretz.com/hasen/spages/1010923.html

Thats a pity.... the Israeli new year is coming ... would have a great new year treat for the Israelis ....

Maybe: big crowds and Israel. Seems like an explosive combination.

^ Sadly true.