Police in Tel Aviv arrested four Palestinians on Wednesday after concluding that allegations by an 11-year-old boy, who claimed that the men had raped him, were false.
Officers said the boy made up the story and provided contradictory testimonies during questioning.
When pressed, the boy confessed to making up the complaint.
Police do not know why the boy made up the allegations.
The four men, residents of the West Bank who were working in Israel illegally, were released early on Wednesday, less than one day after being taken into custody.
The men had been working at an events hall in Bnei Brak.