The 62-year-old soul singer's representatives said the decision was made based on a United Nations recommendation, the Israeli news agency Ynetnews reported. Wonder is a U.N. Ambassador for Peace.
The Friends of the Israeli Defense Forces Western Region Gala is scheduled for Dec. 6.
"We regret the fact that Stevie Wonder has decided to cancel his performance at an important community event of the FIDF, an American organization supporting the educational, cultural, and wellbeing needs of Israel's soldiers, their families, and the families of fallen soldiers," said Yitzhak "Jerry" Gershon, a retired Israeli general who heads the organization. "FIDF is a non-political organization that provides much-needed humanitarian support regardless of religion, political affiliation, or military activity."