Dutch Foreign Minister Caspar Veldkamp resigned on Friday after a cabinet meeting failed to agree sanctions against Israel.
Last month Veldkamp declared far-right Israeli ministers Itamar Ben-Gvir and Bezalel Smotrich unwelcome in the Netherlands.
The Netherlands was also among 21 countries that signed a joint declaration on Thursday condemning Israel's approval of a major West Bank settlement project as "unacceptable and contrary to international law".
But after a cabinet debate on Friday about further possible measures to increase pressure on Israel were deadlocked, Veldkamp told ANP he was "insufficiently able to take meaningful additional measures".
On Thursday Veldkamp said he wanted to take further steps against Israel but later acknowledged he lacked confidence he could act effe