A statement from Israel's communications ministry said it would demand the revocation of the credentials of journalists working for the channel and also cut its cable and satellite connections.
Israel plans to revoke press credentials of Al Jazeera TV journalists, close their Jerusalem bureau and pull the Qatar-based station's broadcasts from local cable and satellite providers, Communications Minister Ayoub Kara said on Sunday.
Kara accused the station of "supporting terrorism" and said cable broadcasters had agreed to his proposal to take the station's Arabic and English channels off air. Closure of the station's office would require further legislation, he added.
Last month, Israeli Prime Minister Benjamin Netanyahu said he would work to close the Jerusalem offices Al Jazeera, accusing the television news network of inciting violence in the city.
Netanyahu's statement came as Jerusalem experienced one of its most tense periods in years after Israel installed new security measures including metal detectors at the entrance of the Al Aqsa Mosque compound in occupied East Jerusalem. The move was in response to a shooting within the compound that left three Arab Israelis and two Israeli policemen dead.
Palestinians viewed the measures as Israel asserting further control over the site, referred as Haram al Sharif by Muslims and Temple Mount by Jews, and days of protests followed.
The events were widely reported, including by Al Jazeera.
The Qatar-based network has yet to officially respond to the statement by Israel's communications ministry.