FIFA President Gianni Infantino confirmed the interest from the South American country for the tournament which is scheduled to start on May 20.

The Governor of Bali, Wayan Koster, had called for the ban on Israel due to Indonesia's support of Palestine.

This led to the Indonesia Football Federation (PSSI) cancelling the draw for the tournament, with FIFA removing the country as hosts on Wednesday (March 29).

Joko Widodo, the President of Indonesia, spoke on how the matter should be a "valuable lesson" for Indonesians.

"Last night I received a report from the general chairperson of PSSI (Erick Thohir) that FIFA has decided to cancel the Under-20 World Cup in Indonesia," said Widodo in a press statement.

"Of course we have to respect this decision.

"Make this a valuable lesson for all of us, for Indonesian national football."

Widido spoke with Thohir, calling for him to do "everything in his power" to ensure Indonesia avoids further sanctions.

Fadli Zon, a member of the right-wing Gerindra Party, accused FIFA of "double standards" for allowing Israel to compete amid the "occupation of Palestine" when Russia are currently banned for invading Ukraine.

"Defending Israel's interests, while ignoring the aspirations of other countries that have a firm political line towards Israel, makes FIFA have a double standard in football politics," said Zon, according to Kompas.

"So, since when can football be separated from politics? 

"FIFA is clearly involved in politics and FIFA's selective politics is very real.

"If we still have to accept the arrival of Israeli athletes, we actually have lowered the constitution and foreign policy line under FIFA rules."

Infantino said Argentina is capable of hosting the competition during a press conference in Paraguay, as he prepared for the South American Football Confederation Congress.

"We all know Argentine football and surely it can host a competition of this level," said Infantino.

"There are other countries that have also announced interest but as a candidacy, with the Government's guarantees and other details, Argentina is the first and we will make the decision in two or three days."

Argentina won the FIFA World Cup in Qatar in December so hosting the under-20 event could be seen as a way of continuing the celebrations, while the country is part of a joint South American bid for the 2030 FIFA World Cup.

Eyal Sela, the Israel Ambassador for Argentina, said the potential hosts for the tournament would be worthy.

"Israel is in favour of Argentina hosting, they deserve it as world champions," he said, as reported by ESPN.

"It is a very nice and big country, with excellent facilities.

"I hope they can also organise the 2030 World Cup."

The 2023 Under-20 World Cup is set to last until June 11, with 24 teams competing.