Maccabi Tel Aviv and British Police won the Tel Aviv and Jerusalem divisions of top tier Liga Alef, while Hapoel Hadera, Beitar Tel Aviv and Maccabi Rehovot won their Liga Bet regional divisions.

League matches were completed in early July 1940, with Hapoel Tel Aviv winning the championship.

In Liga Bet, Hapoel Hadera, Degel Zion Tel Aviv and RSG Rehovot won their regional divisions.

For the first time the EIFA arranged a third division, which was divided into two regions, Samaria (North) and South.

Maccabi Kfar Saba and Hakoach Rishon LeZion won the Samaria and South divisions and qualified along with their runners-up, Hapoel Kfar Saba and HaMa'avir Tel Aviv to the promotion play-offs, at the end which the top three teams were promoted to Liga Bet.