The Red Sea resort is a high-tech and tourism hub. It is close to the borders of Egypt and Jordan, and only some 70km (44 miles) from the southern tip of Israel.
According to data from FlightRadar24.com, a Gulfstream IV jet took off from Tel Aviv's Ben Gurion International airport on Sunday afternoon and flew south along the eastern coast of Egypt's Sinai Peninsula before heading towards Saudi Arabia's north-western Red Sea coast.
On Monday the Saudi Foreign Minister Prince Faisal bin Farhan Al Saud attempted to dispute the claims, tweeting: “No such meeting occurred."
But one senior US adviser told the Wall Street Journal that the leaders discussed several issues, including normalisation of ties and Iran, but that that no substantial agreements were reached.
Later Prince Faisal said there was a meeting but the “only officials present were American and Saudi.”
Saudi leaders will be cautious over going public about any Israeli meetings for fear of a backlash in the conservative nation.
Having already secured normalisation deals with the UAE, Bahrain and Sudan, ties between Israel and Saudi Arabia would be the biggest deal of all.