Rasmea Odeh had been due to speak at an event at a cultural community centre in the Berlin district of Kreuzberg.
"Freedom of expression is a great good. If, however, the state of Israel and Jews are to be ruthlessly persecuted, the red line has been crossed," Andreas Geisel, the interior minister for the state of Berlin, said as quoted by Deutsche Welle. Moreover, authorities told Odeh to leave the Schengen Area.
Earlier, Israel criticised Odeh's planned appearance at the centre.
"Terrorists who pretend to be human rights activists abuse freedom of expression for terror and sedition," Israeli Public Security Minister Gilad Erdan said.
Rasmea Yousef Odeh is a Jordanian and former US citizen of Palestinian origin. She was a member of the Popular Front for the Liberation of Palestine and was sentenced by Israeli courts for her role in the murder of two Israeli students in the 1969 Jerusalem supermarket bombing.