World Bulletin / News Desk

A former senior aide to Israeli Prime Minister Benjamin Netanyahu was arrested in connection with a fraud inquiry, police said on Friday.

A police statement said the aide -- named by media reports as Ari Harrow, Netanyahu's former chief of staff -- was detained and questioned on Thursday evening "as part of an ongoing investigation".

The daily Haaretz newspaper said Israeli police launched a probe last week into Harrow's suspected involvement in the fictitious sale of a business supposedly worth $3 million (2.7 million euros).

Harrow was also being investigated over these funds.

Following weeks of speculation, Attorney General Avichai Mandelblit said Sunday he had ordered an investigation into a "matter" involving Netanyahu, without providing details.

"We stress that this is an examination and not a criminal investigation into the prime minister," his office said.

Netanyahu last month acknowledged receiving money from French tycoon Arnaud Mimran, who was sentenced to eight years in prison over a scam amounting to 283 million euros ($315 million) involving the trade of carbon emissions permits and the taxes on them.

In May, the Israeli state comptroller issued a critical report about Netanyahu's foreign trips, some with his wife and children, between 2003 and 2005 when he was finance minister.