Israeli police have confirmed that Prime Minister Benjamin Netanyahu is being investigated over allegations of fraud, bribery and breach of trust.
It is claimed Netanyahu offered commercial favours to newspaper owner Arnon Mozes in return for the newspaper Yedioth Ahronoth to provide him with positive coverage.
He allegedly offered to stop the circulation of newspaper Israel Hayom, which is Yedioth Ahronoth's main competition.
It is even suggested there are recordings of phone conversations between Netanyahu and Mozes.
Netanyahu has also been accused of accepting bribes from billionaire Hollywood producer Arnon Milchan, according to The Independent.
According to reports the Israel leader was given champagne and cigars and then tried to encourage John Kerry, the then-US secretary of state, to ensure Milchan received a new US visa.
Netanyahu's lawyer, Yaakov Weinroth, said: “Any reasonable person knows that there is nothing remotely criminal involved when a close friend gives his friend a gift of cigars.”
A gagging order has been put in place by investigators as they are currently talking to Netanyahu's former chief of staff Ari Harow in an attempt to convince him to testify.
However a spokesperson quoted by Israeli newspaper Haaretz said the latest allegations against the Prime Minister are false and politically motivated.
They said: "The campaign to change the government is underway, but it is destined to fail, for a simple reason: there won't be anything because there was nothing."