FIFA president Gianni Infantino declared that the international football governing body "cannot address geopolitical problems" as calls increase on football organizations to take action against Israel.
A recent United Nations investigative panel found last month that Israel has committed genocide against Palestinians in Gaza.
The involvement of Israel in football was not included as a official topic on the agenda of a FIFA council meeting held on Thursday.
However, Infantino addressed the subject in his opening remarks for the session at FIFA's headquarters in Switzerland.
The mid-fifties Italian said FIFA was committed to "using the influence of football" to "bring people together in a divided world".
"Our thoughts are with those who are enduring hardship in the numerous disputes that are ongoing around the world today, and the primary message that football can convey right now is one of peace and unity," Infantino said.
"FIFA is not equipped to solve geopolitical challenges, but it has the ability to and must advance football around the world by utilizing its connecting, instructive, cultural and charitable principles."
Israel's national team is currently competing in qualification matches for next summer's World Cup tournament, while the team Maccabi Tel Aviv are taking part in the Europa League.
Amnesty International has urged FIFA, which runs the global tournament, and UEFA, which organizes European competitions, to ban the Israeli Football Association from their competitions.
FIFA vice-president Victor Montagliani stated on the previous day that UEFA should make the decision.
"First and foremost, [Israel] is a participant of UEFA, no different than I have to deal with a member of my area for whatever reason. They have to handle that," he said.
Israel are third in their qualification pool - organized by UEFA - six points behind front-runners Norway.
The group winner from each pool advances automatically for the competition, with the runners-up going into the play-offs.
The 2026 tournament is being jointly hosted by the US, the Mexican nation and the Canadian country.
The US president Donald Trump's government has vowed to fight any attempts to block the Israeli team from participating.
The UN report said there were reasonable grounds to conclude the majority of genocidal acts defined under international law had been carried out by Israeli forces in the Gaza region since the beginning of the war in last year.
A group of human rights experts at the UN later urged FIFA and UEFA to remove Israel's national team from international football, saying: "Athletics must reject the notion that it is normal operations."
Israel has consistently denied that its operations in Gaza amount to genocide and says they are justified as a method of protection.
Its diplomatic office described the United Nations document "misleading and inaccurate".
