Jerusalem: Sara Netanyahu, the wife of Israel's Prime Minister Benjamin Netanyahu, has been convicted of misusing state funds and sentenced to pay a fine of more than $US15,000 ($21,800) after a plea bargain.

The sentencing ends the years-long saga of just one of the high-profile corruption cases involving the Prime Minister's family.

The court ruling settled allegations that Sara Netanyahu had misused some $US100,000 in state money on lavish meals. She was indicted on charges of fraud and breach of trust last year after the State Attorney's office accused her of running up large tabs at luxury restaurants while the official residence employed a full-time chef between the years 2010 and 2013.

Israeli Prime Minister Benjamin Netanyahu and his wife Sara. Credit:AP

The settlement saw her admit to a more minor charge of "intentionally exploiting the mistake of someone else," specifically by misleading officials who didn't realise she already benefited from chefs on the government payroll.