The name Israel means "he who strives with God" (cf. Genesis 32:28). It was first applied to Jacob as a name of honor and then came to be applied to the nation formed from the descendants of his twelve sons (e.g., Exodus 1:7). With the division of the kingdom of Israel following Solomon's reign, Israel became the name for the Northern Kingdom of the ten tribes centered in Ephraim, in distinction to the kingdom of Judah (which included the tribe of Benjamin) in the south (e.g., 1 Samuel 11:8), although, the term Israel could still be used for all of the covenant people even after the divided monarchy (e.g., Isaiah 5:7). The nation of Israel in the OT was peculiarly formed by God as His special people in covenant relationship with Him (cf. Exodus 19:5-6). The Gospels continue this same use of the term Israel for the OT covenant people. With their rejection of the Messiah as a nation, some interpreters understand that God has established the church as a new spiritual Israel (cf. Galatians 6:16) in which the remaining prophecies concerning Israel's restoration and blessing to all people will be fulfilled. Others, however, understand Israel to retain the OT ethnic and national meaning throughout all Scripture and the prophecies concerning Israel yet to be fulfilled through this special people (cf. Romans 11:24-29).
This topic is from the Lockman Foundation.