Israeli Prime Minister Benjamin Netanyahu has denounced an investigation into possible links between his aides and Qatar as a "witch hunt", after he gave testimony to police.

An adviser and a former spokesman were arrested on Monday over alleged payments from the Gulf Arab state as part of the probe, which has been dubbed "Qatar-gate". They have denied any wrongdoing.

Netanyahu, accused the police of holding the two men as "hostages", adding: "There is no case."

A Qatari official also dismissed the probe as a "smear campaign" against Qatar, which has played a key role as a mediator between Israel and Hamas during the war in Gaza.
It comes as Netanyahu faces escalating protests in Israel over his policies, including the resumption of Israel's offensive against Hamas before securing the release of all the remaining hostages, the dismissal of the director of the Shin Bet internal security agency, and the advancement of a controversial plan to overhaul the judiciary.