Netanyahu tapped a former commander of Israel's navy, Eli Sharvit, to replace Shin Bet head Ronen Bar, who remains in office pending a Supreme Court decision over legal challenges to his dismissal.

Government moves to dismiss Bar, who has presided over an investigation into possible ties between Qatar and a number of Netanyahu's aides, have provoked mass protests in Tel Aviv and Jerusalem.

"Vice-Admiral Sharvit has served in the IDF (Israel Defence Forces) for 36 years, including five years as Commander of the Israel Navy. In that position, he led the force-building of maritime defence of territorial waters and conducted complex operations against Hamas, Hezbollah and Iran," Netanyahu said in a statement.

Netanyahu said he had lost his confidence in Bar over the October 7, 2023, security failure that led to Israel's deadliest single day and triggered the war against Hamas in Gaza.

The Supreme Court has frozen Bar's dismissal and is due to hear petitions against it on April 8, but ruled that in the meantime Netanyahu could move ahead and interview candidates to replace him.

INVESTIGATION

Critics, including opposition lawmakers and watchdog groups, challenged Bar's dismissal in court and said its timing raised concern that it was meant to scupper an ongoing Shin Bet and police investigation announced in late February into possible links between Netanyahu aides and Qatar.

Bar, who played a role in negotiating a ceasefire and hostage deal with Hamas in January, has said his dismissal was tainted by conflicts of interest and would jeopardise the Qatar investigation.

Netanyahu, who is on trial over a separate series of corruption charges which he denies, has rejected the accusations regarding his aides and Qatar as "fake news" and a politically motivated campaign against him.

Two suspects in the case were arrested on Monday, police said. It provided no further details, citing a court-ordered gag on the case.

A Qatari official also dismissed the accusations as part of a "smear campaign" against Qatar.

According to recent investigations by public broadcaster Kan and the left-leaning Haaretz newspaper, the aides are suspected of having orchestrated or been involved in a campaign to improve Qatar's image abroad. They deny any wrongdoing.

Qatar is not defined by Israel as an enemy state but is home to some Hamas leaders. Along with Egypt, it has been mediating indirect negotiations between Israel and the Palestinian militant group for a ceasefire in Gaza.

Bar's dismissal has fuelled street protests against Netanyahu and his government over its conduct of the war in Gaza and demonstrations were expected to continue on Monday.

Tens of thousands of people have joined the demonstrations against Bar's sacking, which they cast as an attempt to undermine state institutions while prolonging the war in Gaza for political gains at the expense of hostages still held there.

Netanyahu said on Sunday the recent resumption of fighting in Gaza, which shattered the two-month truce, was meant to pressure Hamas into releasing the 59 hostages still held in Gaza.