Israeli Prime Minister Benjamin Netanyahu charged over alleged fraud and corruption

Israel's attorney general has formally charged Prime Minister Benjamin Netanyahu in a series of corruption cases, throwing the country's paralysed political system into further disarray and threatening the long-time leader's grip on power.

Attorney General Avichai Mandelblit today charged Netanyahu with fraud, breach of trust and accepting bribes in three different scandals.

It is the first time a sitting Israeli prime minister has been charged with a crime.

Both Mandelblit and Netanyahu are expected to issue formal statements later today.

Netanyahu is suspected of wrongfully accepting $US264,000 ($A388,598) worth of gifts, which prosecutors said included cigars and champagne, from tycoons and of dispensing favours in alleged bids for improved coverage by Israel's biggest selling newspaper, Yedioth Ahronoth, and the Walla website.

Police recommended in February Mandelblit file criminal charges against the right-wing prime minister in the long-running investigations dubbed Cases 1000, 2000 and 4000.

Israel's longest-serving premier could face up to 10 years in prison if convicted of bribery and a maximum 3-year term for fraud and breach of trust.

The indictment does not require Netanyahu to resign but is expected to raise pressure on him to step down.

Netanyahu has called the allegations part of a witch hunt, lashing out against the media, police, prosecutors and the justice system.