A Melbourne man is in custody in Israel accused of stabbing his wife to death in their Tel Aviv hotel room.

Israeli police are investigating the death of the 54-year-old woman, also an Australian, who was found with stab wounds to her upper body and neck.

Police were called to the Dan Panorama hotel in Tel Aviv after screams were heard coming from the couple's room, according to Israeli newspaper Ha'aretz.

The ABC reports the 45-year-old man claims he acted in self-defence and is mentally ill.

He is due to face court on Tuesday.