Netanyahu's allies sought to blame Berlin's top diplomat for the tiff.
Gabriel took part in an official Remembrance Day ceremony, laying a wreath at Yad Vashem, the World Holocaust Remembrance Center.
An Israeli left-wing NGO on Tuesday evening called on the worldwide community to pressure Israel over its West Bank policies, as the diplomatic spat grew over Israeli Prime Minister Benjamin Netanyahu's refusal to meet with German Foreign Minister Sigmar Gabriel.
However, other voices were more laudatory, with Deputy Foreign Minister Tzipi Hotovely congratulating Netanyahu for setting a red line with regard to "anti-Israel" organizations, and Yesh Atid leader Yair Lapid suggesting Merkel would have responded the same way if Netanyahu had met with radical left-wing groups while visiting Germany.
Breaking the Silence, an anti-Israel organization is comprised of veteran IDF combatants who have served since the start of the Second Intifada and are ostensibly committed "to expose the Israeli public to the reality of everyday life in the Occupied Territories". Ms Netanyahu has been variously accused of allegedly using money set aside for the prime minister's official residence for furniture and improvements to the pair's private home, paying for her elderly father's care, inflating dinner party numbers to hire private chefs, and pocketing 23,000 shekels (£4,800) in recycling refunds.
Im Tirtzu CEO Matan Peleg on Tuesday sent a harsh letter to German Foreign Minister Sigmar Gabriel, accusing him of hypocrisy.
Israeli Prime Minister Benjamin Netanyahu cancelled a meeting with Germany's Foreign Minister after he made a decision to meet with NGOs opposed to the occupation of Palestinian territories, an official said.
It seems that the Prime Minister's office attempted to quietly solve the crisis before the German Foreign Minister's visit came to an end.
Internet firms winding up for a fight on 'net neutrality'
He told reporters that the discussions were constructive and he believes that the companies wanted to find a "common ground". The industry's giants, however, have mostly stayed silent beyond offering blanket statements of support for net neutrality .
"These are topics of the daily political news circle on which we need to form a political view".
This after the Belgian Prime Minister Charles Michel met with people from the same group that Gabriel met.
"I regret it greatly", he told reporters.
"Anyone claiming that the German Foreign Minister didn't know about the explosive nature of his meeting with Breaking the Silence and B'Tzelem", writes Beck, "is throwing dust in your eyes".
Gabriel said he only heard of Mr. Netanyahu's ultimatum through the media, but an Israeli official contested that with The Times of Israel on Monday, saying that "the message was clearly conveyed to the Germans".
"Gabriel also noted that if Netanyahu came to Germany and met with NGOs critical of the government - they do exist, he said - and Germany cut the visit short, "[the Israelis] would think we're insane".
But he said a cancellation of Tuesday's meeting would not be a "catastrophe", and wouldn't change his relationship with Israel.
Gabriel told journalists in Jerusalem that he regretted Netanyahu's decision, but also said that he did not think it would badly impact relations between the two countries.