The Israel and Argentina federations had yet to formally announce the game's cancellation as of Tuesday night.
BDS criticised the fixture as "political", and accused Israeli officials of using it to cover up attacks on Palestinians "on and off the field".
The fixture between the two teams was set to be played in Jerusalem's Teddy Stadium on June 9, which is built on land that was once a Palestinian village that was destroyed in 1948. Last week, MK Yousef Jabareen, a Palestinian citizen of Israel, met with Argentina's ambassador to Israel and asked for the game to be cancelled. The match was originally slated to be played in Haifa but Israeli authorities contributed funding for it to be moved to Jerusalem, irking Palestinians further following U.S. President Donald Trump's recognition of the city as Israel's capital.
Sampaoli had last week aired misgivings about having to travel to Israel for the game, noting he would have preferred to remain in Barcelona, where the team is holding its training camp.
According to reports, the Argentina's football association made the decision to withdraw from the Saturday friendly amid an escalation of violence and criticism.
"We thank all liberals among sport people and all those who stood by us to demand the cancellation of the match between Argentina and the occupation in Jerusalem".
Abdel Wahed went on to say that the match was part of the celebrations of Israel's 70th anniversary since its establishment in 1948, after hundreds of thousands of Palestinians were forcibly displaced from their villages and lands by Zionist paramilitaries.
"The Israeli government has turned a regular sports match into a political tool".
Palestinian authorities said in May that more than 50 people were killed by the Israeli military in Palestinian protests along the Gaza border as the USA opened its new embassy in Jerusalem.
The news was met with cheers in Gaza, where at least 120 Palestinians were killed by Israeli forces during recent protests. The Jewish state considers the entire city its own "indivisible" capital.
"Messi is a symbol of peace and love", he said in a statement ahead of the game.
Messi, he added, "has tens of millions of fans in the Arab and Muslim countries... we ask everyone to burn their shirts which bear his name and posters (with his image)".