Netanyahu held meetings on Thursday with Defense Minister Moshe Ya'alon, the Foreign Ministry's director-general, and several security and legal officials, Israel Radio reported.
It added that Foreign Minister Avigdor Lieberman had not been invited to the meeting, but refrained from providing a reason for this.
Netanyahu is expected to brief his security and political affairs cabinet on his decisions in this regard, the broadcaster quoted a source close to Netanyahu's office as saying.
There has been no comment from Netanyahu's office on Thursday's meetings.
Abbas signed the Rome Statute, which would allow his Palestinian Authority to sue Israel, on Wednesday.
The move came only hours after the UN Security Council rejected a Palestinian draft resolution calling for a three-year deadline for ending Israel's decades-long occupation of Palestinian land.
Commenting on the move, Netanyahu claimed that the Palestinian Authority – which has a joint government with Palestinian faction Hamas – should fear the International Criminal Court more than Israel.