Use istio ingress gateway as proxy for external services

I am new to istio and we are planning to use Istio as a Proxy for External Services for example as root url and other path based traffic to be routed to external services like Azure VM and Azure webapps.

VM App:
Web App:

We want to use proxy url as even if the traffic routes to or app2.

Please let me know it is possible to configure with istio.

Thanks and Regards