Yisrael Katz becomes Israeli foreign minister as Benjamin Netanyahu contracts his ministerial portfolio

"Together with the prime minister we will continue to advance and lead Israel's foreign policy to further achievements," Mr Katz said in a statement after the announcement on Sunday.

A Likud spokesman said Mr Katz would become acting foreign minister, but gave no further details.

It is unclear whether he will remain transportation and intelligence minister in addition to the foreign portfolio.

The 63-year-old Mr Katz is a senior member of the governing Likud and wields influence within the party.

He has previously spoken of his ambition to become prime minister, but has not been recently rumoured to be considering a challenge to Mr Netanyahu.