Jerusalem: Israel's Supreme Court on Sunday ordered the Shin Bet security agency to halt its use of phone-surveillance technology in the battle against the coronavirus, unless parliament begins legislating guidelines for the controversial practice.

In its decision, the court said parliament must begin the legislative process by Thursday.

The ruling came hours after Israel's embattled health minister said he would step down following a public uproar over his handling of the crisis and his own COVID-19 infection.

Elsewhere in the region, Saudi Arabia signed a $US264 million deal with China to provide the ability to conduct 9 million coronavirus tests. Syria said its schools will remain closed for the rest of the school year, while the Gaza Strip's Hamas rulers said they will allow restaurants and coffee shops to reopen.

Israel last month said it was using the Shin Bet's phone-surveillance technology to identify people exposed to the coronavirus by retracing the movements of those who were already infected. People who had come into close contact with the infected were then ordered into home quarantine.