There seems to be some confusion as to what role Israel will play in the last days.

People still believe that Israel is God's chosen people, but is that covenant still in place?

The covenant God made with Israel was a conditional agreement. As long as Israel obeyed God they would be God's chosen people, and God would bless them and look after them.

Now therefore, if ye will obey my voice indeed, and keep my covenant, then ye shall be a peculiar treasure unto me above all people: for all the earth is mine: And ye shall be unto me a kingdom of priests, and an holy nation. These are the words which thou shalt speak unto the children of Israel.
- Exodus 19:5-6 (KJV)

Israel made a blood covenant with God, and they agreed to be obedient.

And he took the book of the covenant, and read in the audience of the people: and they said, All that the Lord hath said will we do, and be obedient. And Moses took the blood, and sprinkled it on the people, and said, Behold the blood of the covenant, which the Lord hath made with you concerning all these words.
- Exodus 24:7-8 (KJV)

As Israel broke the agreement (they stopped obeying God), the covenant was nullified, and a new covenant was made.

In that he saith, A new covenant, he hath made the first old. Now that which decayeth and waxeth old is ready to vanish away.
- Hebrews 8:13 (KJV)

The new covenant was put in place at the cross.

Jesus, when he had cried again with a loud voice, yielded up the ghost. And, behold, the veil of the temple was rent in twain from the top to the bottom; and the earth did quake, and the rocks rent.
- Matthew 27:50-51 (KJV)

We went from salvation through works (keeping the Law), to salvation by grace.

As Christians we are led by the Spirit.

This is the covenant that I will make with them after those days, saith the Lord, I will put my laws into their hearts, and in their minds will I write them.
- Hebrews 10:16 (KJV)

We then have become spiritual Israel.

For he is not a Jew, which is one outwardly; neither is that circumcision, which is outward in the flesh: but he is a Jew, which is one inwardly; and circumcision is that of the heart, in the spirit, and not in the letter; whose praise is not of men, but of God.
- Romans 2:28-29 (KJV)

There is no special role for Israel anymore.