Gary Issot’s side took on Hapoel Be’er Sheva in their second game of the day.
The first chance of the match fell to Hapoel. Avshalom headed over from close range in what was a let off for the Eagles.
The Palace side, featuring a number of under 16s in the starting eleven, fell behind in a game they desperately needed to pick up some points in. However, Hapoel's Binyamin picked up a loose pass in the area and curled into the top left-hand corner past Russell to give them an early lead.
Palace equalised in the 24th minute. A ball whipped in from the left-hand side was headed in by Rob Street into the roof of the net. That was the end of the action in the first half.
With 20 minutes to play in the second half, Palace were dealt a blow, Siddik was sent off for a challenge on the edge of the box that the referee deemed to be reckless.
Ajayi had a chance to put the 10-men in front but his effort when through one-on-one was straight at the keeper.
With two minutes of normal time left Hapoel scored what proved to be the winner. A corner was driven in and at the near post the ball was flicked past Russell.
The result leaves the U19 squad with one point from three games with two remaining fixtures left to play.
The 17-year-old academy striker Rob Street said: "It's been a tough day, we have lost both games. It's always tough out here. The teams are a lot different in the way they play.
Physically it's very demanding but you have to get on with it. It's no excuse we still should be winning games out here."
Palace are next in action on Saturday 26 January with another double header. The young Eagles are playing Maccabi Tel Aviv at 8:00am GMT and then play Beitar Jerusalem at 11:45am GMT. Stay tuned to Palace channel's for updates.
Hapoel: Levi, Avitan, Malul, Cohen, Shitrit, Binyamin, Avshalom, Fitussi, Lavi, Nir, El Nasaara.
CPFC: Russell, Onoahbagbe, Siddik, Street, Donkin, Omilabu, Ajayi, Gurung, Parris, Trehy, Steele.
To watch all the post-match reaction from the games in Israel, head over to Palace TV now either by clicking here or 'Palace TV' on the official Palace app.