The relationship between Israel and the Church in the New Testament is something theologians do not see eye-to-eye on. At one extreme are those who claim the church has replaced Israel and that God has no future plan for Israel (replacement theology). At the other extreme are those who claim ongoing separate identities and divine plans for the two entities (the traditional dispensationalist view); in this view God is currently dealing with the gentiles but will at some point prior to Christ’s return, turn his attention back to Israel.

Keith Mathison brings a middle position. (Keith began graduate studies at Dallas Theological Seminary before transferring to Reformed Theological Seminary, Orlando. After completing his M.A. at RTS, he began working at Ligonier Ministries, where he served as an associate editor of the Reformation Study Bible. He obtained a Ph.D. from Whitefield Theological Seminary and currently serves as professor of systematic theology at Reformation Bible College in Sanford, Florida.) Keith wisely concludes,

“The relationship between Israel and the church in the New Testament is not always easy to discern, but it can be understood if we remember the differences between national Israel and true Israel in both the Old Testament and the New, and if we keep in mind what Paul teaches in Romans 11. Israel’s present hardening has a purpose in God’s plan, but this hardening is not permanent. The future restoration of the nation of Israel will involve their re-grafting into the olive tree, the one people of God. The restoration of Israel will mean their becoming part of the “true Israel” by faith in Jesus Christ the Messiah.”

I think Keith’s perspective is the correct understanding. The full text of Keith’s position is below and worth reading . . .