The main issue raised under FIFA regulations by the Palestinian federation concerns six teams that are members of the Israeli federation but based in West Bank settlements within the FIFA jurisdiction of the Palestinian federation and without its permission. According to a report by Israeli NGO Kerem Navot, the playing fields of all six settlement teams are also situated on land seized from six different Palestinian communities.
Asian Football Confederation revives expulsion threat to Israel over treatment of Palestine – Keir Radnedge – World Soccer 28.02.17
FIFA was due to receive, in January, an update from its monitoring taskforce on Israeli-Palestinian issues being led by South Africa’s Tokyo Sexwale. No update was forthcoming, however, only being promised at some unspecified future date. Absent speedy resolution of the outstanding issues, the Palestine federation’s president, Jibril Rajoub, is reportedly set to reactivate through the Asian Football Confederation a demand that May’s FIFA Congress in Bahrain expel Israel, a proposal that has been taken off the table at the last moment three times in the last four years
And see: FIFA still to decide re Israeli settlement teams January 17, 2017