The leader of Israel's opposition, Isaac Herzog, was questioned last week by police as part of an ongoing investigation into allegations that he committed fraud during his 2013 leadership campaign.
Other members of his campaign team have also been questioned under suspicion that services rendered during his successful bid for the Labour Party leadership were not documented or paid for.
Channel Two reported on Sunday that the police investigators did not believe they had sufficient evidence to press charges and that the case should be closed. The decision over whether to end proceedings will be down to Attorney General Avichai Mendelblitt. Should Mr Mendelblitt decide to go along with the police recommendation, much will depend on whether he reasons that there was not enough evidence or that Mr Herzog has no case to answer. Either way, it may be too late to save the Labour leader's political prospects.
While other candidates have yet to announce their plans to run against Mr Herzog, previous party leader Shelly Yachimovich has said there are "high chances" she will run.