The match between the Italian and Spanish teams was scheduled to take place on Sunday evening at Bloomfield Stadium in Tel Aviv.
The Spanish club said in a statement that the match was canceled “due to the current security situation”.
While Tel Aviv has not been targeted since the current round of fighting began on Friday afternoon, sirens sounded in the suburbs of Holon and Bat Yam.
On Friday, the Tel Aviv municipality opened shelters in the city.
Most of the shells fired on Saturday targeted southern towns, but rockets were fired at the central city of Modi’in at noon.
It was not clear whether Islamic Jihad had limited capabilities to launch major attacks on distant cities after Israeli air strikes on terrorist targets in the Gaza Strip, or whether it had made a conscious decision not to escalate further.