Netanyahu tested negative for the virus on Sunday and on Monday, but he will still "enter isolation until Friday following contact with a confirmed coronavirus patient", the statement said.
According yo several Israeli media outlets, Netanyahu met last week with a member of his right-wing Likud party, Michael Kleiner, who has subsequently tested positive for the virus.
The statement from the prime minister's office did not provide details regarding Netanyahu's potential exposure.
Earlier last week, the Israeli PM was at Israel's Ben Gurion airport to welcome a first shipment of Pfizer's coronavirus vaccine.
He declared that the end of the pandemic was "in sight" and offered to take the first jab in a mass vaccination campaign due to start later this month.
Israel, a country of nine million people, has registered more than 358,000 coronavirus cases, including 3003 deaths.