Last week, Israeli police said six Arab Israelis were arrested on suspicion of planning to travel to Syria to join IS in a case sparked by a man's paraglider journey.
On October 24, a 23-year-old entered Syria illegally on a paraglider from the Israeli-occupied Golan Heights, prompting an investigation by Israeli security forces.
Israeli authorities say about 45 Israeli Arabs have joined the ranks of IS in recent months, with some having been killed.
"I have asked the attorney general to advance steps to revoke the citizenship of those who join ISIS," Netanyahu said today, using another acronym for IS.
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"Whoever joins ISIS will not be an Israeli citizen. And if he leaves the borders of the state, he will not return," he said at the start of a cabinet meeting.
"I think this lesson is becoming increasingly clear throughout the international arena and it is fitting that we lead this effort as well."
Concern over foreign fighters travelling to and from Syria to fight with IS has risen in the wake of the November 13 Paris attacks.