Indonesia was stripped of hosting the men's Under-20 World Cup on Wednesday amid political turmoil regarding Israel's participation.
FIFA said Indonesia was not ready to stage the 24-team tournament scheduled to start on May 20.
The decision came after a meeting in Doha between FIFA president Gianni Infantino and Indonesian soccer federation president Erick Thohir.
Israel qualified for its first Under-20 World Cup in June. The country's participation in Friday's scheduled draw in Bali provoked political opposition this month.
Indonesia is the world’s most populous Muslim-majority nation and does not have formal diplomatic relations with Israel, while publicly supporting the Palestinian cause.
Indonesia’s hosting was cast into doubt on Sunday when FIFA postponed the draw.
It is unclear who could now host the tournament, which was scheduled to be played in six stadiums in Indonesia.
Argentina, which did not qualify for the tournament, is reportedly interested in hosting.
The Indonesian soccer federation could be further disciplined by FIFA. A suspension could remove Indonesia from Asian qualifying for the 2026 World Cup, which starts in October.