The move came after the Cabinet gathered with Prime Minister Naftali Bennet's leadership to discuss precautions against the new variant.
The Cabinet decided that no foreigners will be allowed in without the approval from a committee.
Accordingly, returning vaccinated Israelis will be required to have a PCR test and undergo a three-day quarantine, followed by another negative PCR test to end the quarantine.
Those without vaccination will have to isolate for one week on condition they agree to test. If they do not, they will be quarantined for 14 days.
The ban is expected to come into effect at midnight on Sunday.
The World Health Organization (WHO) has warned the new variant is "of concern", with early evidence suggesting a higher re-infection risk.
However, the WHO has warned against countries hastily imposing travel restrictions, saying they should look to a "risk-based and scientific approach".