In coming months, the PM could find himself in the throes of early national elections after the departure last month of a key coalition partner left his Government teetering on the edge.
His opponents called for him to resign as soon as possible in light of the allegations, which follow police recommendations last February to charge him in two other corruption cases, and yet another case against his wife for breach of public trust.
Responding to the most recent charges, Netanyahu questioned the timing and veracity of the announcement, accusing police of leaking parts of the investigation even before any conclusions were reached.
"Police recommendations have no legal status," he said in a statement. "Only recently, police recommendations in cases against other public figures were rejected by the relevant authorities. I am certain that after considering the matters the same conclusion will be reached in this case as well."
Netanyahu reiterated a phrase he has used since all the investigations against him were launched more than two years ago - "that there was nothing because there is nothing".
When police initially said he should be charged, Netanyahu said it was an attempt by his opponents to unseat him through corruption allegations because they couldn't win at the ballot box. Now he appears to be facing the challenge of both - legal charges and an election.
"The question is what will happen first: Will the attorney-general decide to prosecute or will the Government collapse?" said Reuven Hazan, a professor of political science at Hebrew University of Jerusalem. "If there is an election first and Netanyahu wins with everyone knowing about his legal issues, then he can say that despite knowledge of the legal battles, the people still want him."
If the indictment comes first, it is unclear how or if Netanyahu will be able to remain Prime Minister.
In a statement Sunday, police said it had evidence to show that during the time he served as minister of communication from 2014 to 2017 (while he was also prime minister), Netanyahu intervened with regulators to help Bezeq merge with another large Israeli communications company. In exchange, Elovitch instructed journalists at the news website Walla! to provide favourable coverage of the prime minister and his wife.
"Netanyahu and his associates intervened in a blatant and ongoing manner, sometimes even daily, in the content published by the Walla News website and sought to influence the appointment of senior employees (editors and reporters)," police said.
The website was used to promote the Prime Minister's personal interests by publishing flattering articles and pictures and removing critical content about him and his family, said the police statement.
Netanyahu's manipulation of Walla! has been widely reported by local media, but last week a fuller expose on Israel's Channel 10 featured both former and present employees of the news site describing in detail how stories were changed or completely removed if they did not flatter the Prime Minister and his wife.
Opposition leader Avi Gabbay, chairman of the Zionist Union party, called for the Prime Minister to stand down immediately. "A person with such a sickly obsession with what the media says about him must not lead the State of Israel. Every day he continues in his position harm to the citizens of this country."
In the two other cases where the police have recommended indictments, Netanyahu is also suspected of receiving bribes in exchange for favours. The first case, referred to as Case 1000, involves gifts of cigars and jewellery bestowed by billionaire benefactors such as Israeli-born Hollywood producer Arnon Milchan, whose film credits include Fight Club and Pretty Woman, and Australian businessman James Packer.
The other case, 2000, involves deals made between Netanyahu and Arnon Mozes, publisher of the popular Israeli daily Yedioth Ahronoth. Information leaked to the Israeli media suggested the agreement would have allowed the Prime Minister to receive more favourable coverage from the newspaper if he agreed to weaken the status of rival daily newspaper Israel Hayom, owned by US casino magnate Sheldon Adelson.
In November, police announced that Netanyahu was not a suspect in an additional case, 3000, involving the dubious purchase of naval vessels from a German shipbuilder. Indictments were recommended, however, against some of the Prime Minister's close associates, including his cousin and lawyer David Shimron.
Sara Netanyahu is also a suspect in a different corruption case. Last June, she was formally charged by state prosecutors with fraud and breach of public trust for ordering meals to the official prime minister's residence worth a total of US$99,000, even though a full-time chef was employed there. An initial hearing has already been held in this case.
