With the issue receiving widespread coverage in Israel and the country's attorney general examining it, Netanyahu acknowledged on Monday that Arnaud Mimran, currently on trial in Paris, had given him $40,000.
Netanyahu said however that all had been done according to the law, and that the 2001 contribution was not political and occurred when he was not in public office.
The prime minister's office said the money was for a fund for Netanyahu's public activities, which included media appearances and travel abroad to promote Israel.
Mimran told Israel's Channel 10 television late on Monday that the amount was actually some 170,000 euros ($193,000), transferred to Netanyahu's personal account.
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He also said that previous reports that he had contributed one million euros were incorrect.
"First of all, I never said one million euros; I said one million," Mimran said in the interview.
"It was in 2001, so it was one million French francs -- 170,000 euros. I still have the bank statements, from Arnaud Mimran, my personal account, to Benjamin Netanyahu, his personal account."
Following the interview, Netanyahu's lawyer David Shimron dismissed Mimran's claims.