An Israeli newspaper owner allegedly offered to let Prime Minister Benjamin Netanyahu hand-pick journalists he would later hire as part of a deal to promote more favourable coverage of the leader.

The alleged negotiations included a request by Arnon Mozes, owner of Yedioth Ahronoth, that in return Mr Netanyahu promote legislation that would require the competitor paper Israel Hayom to be sold to readers, rather than given away free.

Israel Hayom is a pro-Netanyahu outlet owned by US billionaire and Republican Party donor Sheldon Adelson.

It is claimed that Mr Netanyahu promised to progress the deal after the Knesset elections of March 2015, but it never materialised, Haaretz reported.

Mr Netanyahu is already under investigation for alleged corruption relating to receiving illegal gifts and donations. He has disputed the allegations and his lawyer said receiving gifts from friends is not illegal.

The Prime Minister is accused of accepting thousands of pounds worth of gifts, including cigars and champagne, from Israeli billionaire Hollywood producer Arnon Milchan. Reports suggest Mr Netanyahu lobbied US Secretary of State John Kerry on Mr Milchan’s behalf while the producer was attempting to acquire a new US visa.

Mr Netanyahu has denied the allegations. Sources said he told his ministers: “This is wrong, incessant pressure from the media on law enforcement. They release balloons and the hot air comes out of them time after time. That will be the case here too.”

A source, speaking for Mr Netanyahu on the newspaper claims, told Haaretz that "the whole supposed affair will turn out to be nothing".