In a statement issued on Thursday at the end of the long-running investigation, police said there is proof that David Shimron, Netanyahu's cousin and his family lawyer, "committed bribery offences and money laundering" in connection with the purchase of German submarines, recommending this indictment.
Along with Shimron, police added, Netanyahu's ex-bureau chief, David Sharan, former navy chief, Eliezer Marom, and two other ex-navy generals should also be indicted on similar bribery counts in the same case, better known as the submarine affair or Case 3000, Presstv Reported.
Case 3000 deals with Israel's $2-billion purchase of Dolphin-class nuclear-arms-capable submarines from German shipbuilding company ThyssenKrupp.
Shimron represented the German firm in the sale inside the occupied territories and is believed to have used his influence on Netanyahu to promote the deal in exchange for a hefty cut of it.
The police probe found he had received a total of 270,000 shekels "in fact for opening doors and influencing public officials to" facilitate the inking of the deal and promote the personal gains of Michael Ganor, a former ThyssenKrupp representative in Israel. Ganor has turned state's evidence in the case.
The Israeli premier himself is not a suspect in Case 3000, but he stands accused of bribery, fraud and breach of trust in two separate corruption cases, which have rattled his administration and brought Netanyahu under much scrutiny.
The investigation's results will now be submitted to the attorney general for a decision whether the suspects should be charged.
In February, police recommended Netanyahu be indicted in Case 1000 and Case 2000 following several questioning sessions.
Case 1000 revolves around illicit valuable presents received by Netanyahu and his family from billionaire benefactors, while Case 2000 looks into a suspected quid pro quo deal between the premier and Israel's Yedioth Ahronoth newspaper.
The corruption cases have triggered numerous anti-Netanyahu protests in Tel Aviv and other cities in the occupied territories, with the participants calling on the scandal-hit prime minister to step down.