Saudi Arabia has been leading an effort to isolate Qatar, accusing the energy-rich Gulf state, and the Qatari-backed channel, of supporting violent Islamic groups across the Middle East.
Jordan and Saudi Arabia have closed Al-Jazeera's local offices, while the channel and its affiliate sites have been blocked in Saudi Arabia, United Arab Emirates, Egypt and Bahrain.
While Israel is not formally part of that effort, the stepped-up pressure appears to have emboldened Netanyahu to look into closing down the channel's local operations as well.
The Yediot Ahronot daily reported today that various government officials held a first meeting on the issue yesterday.
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The Israeli official confirmed that discussions were underway but said no decisions had been made. The official was not authorized to discuss the issue with the media and spoke on condition of anonymity. Netanyahu's office declined comment.
Walid Omary, Al-Jazeera's local bureau chief, said he has not been notified of any formal action against his operation. But he rejected the Israeli claims of bias and accused Israel of waging an incitement campaign.
Shutting the bureau would likely face significant legal obstacles and test Israel's commitment to protecting freedom of the press.
Some key officials might also oppose the step. While Israel complains about Al-Jazeera's coverage, the station is also one of the few Arab media channels that interviews Israeli officials, giving Israeli leaders a rare outlet to address the Arab public.
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