"I was informed of the possibility of the appointment of Salaam Fayyad to a UN position," he said at Israel's weekly cabinet meeting.
"I said that the time has come for reciprocity in the UN's relations with Israel and free gifts cannot be constantly given to the Palestinian side," Netanyahu said, welcoming the US veto.
"The time has come for positions and appointments to be made to the Israeli side as well," he said, quoted in a statement issued by the prime minister's office.
UN chief Antonio Guterres yesterday defended his choice of Fayyad to be the UN peace envoy to Libya, a day after the United States blocked the appointment.
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The choice "was solely based on Mr Fayyad's recognised personal qualities and his competence for that position", said UN spokesman Stephane Dujarric.
"United Nations staff serve strictly in their personal capacity. They do not represent any government or country."
But the US ambassador to the United Nations, Nikki Haley, said Washington did not "support the signal this appointment would send within the United Nations", where the state of Palestine does not have full membership.
"For too long, the UN has been unfairly biased in favour of the Palestinian Authority to the detriment of our allies in Israel," she said in a statement.
The UN secretary general seeks the unanimous backing of all 15 Security Council members for appointments of his special representatives to conflict areas.
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