Separately, police said earlier this month there was evidence to charge a Netanyahu lawyer and others with bribery in a corruption probe related to Israel's purchase of German submarines. These recommendations were decided and leaked before the investigation had even begun.
Authorities allege Netanyahu awarded regulatory favors to Israel's leading telecommunications company, Bezeq Telecom Israel (BEZQ.TA), in return for more positive coverage of him and his wife on a news website, Walla, owned by the company.
Police have already said there is enough evidence to indict Netanyahu on charges of fraud, bribery, and breach of trust in two separate cases.
The prime minister has denied any wrongdoing, dismissing the accusations as a witch hunt orchestrated by the media.
Those relate to allegations that Netanyahu accepted gifts from businessmen and that he tried to strike a deal with a different media mogul for better coverage in return for curbs on a competing newspaper.
In response to the police statement, Netanyahu said, "The police recommendations against me and my wife do not surprise anyone".
Former journalists at the Walla news site have attested to being pressured to refrain from negative reporting of Netanyahu.
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According to a police statement, authorities found evidence of fraud, bribery, and breach of trust.
The Israeli attorney-general will now have to decide whether to bring charges in the case.
Bezeq telecom company's controlling shareholder Shaul Elovitch, seen here in a Tel Aviv courtroom on February 22, 2018, is suspected of involvement in a scandal in which Israeli Prime Minister Benjamin Netanyahu allegedly advanced regulatory decisions as communications minister that benefited Bezeq, in exchange for positive coverage on the company's Walla news site.
He is also suspected of negotiating favorable press coverage with the Yedioth Ahronoth publisher Arnon Mozes in Case 2000.
Police are also recommending that charges be brought against Netanyahu's wife, Sara, who has been at the centre of much of the corruption allegations surrounding the longtime Israeli leader. In June, Bibi was questioned by investigators about possible graft and corruption that led to the purchase of three Dolphin-class submarines and four Sa'ar 6-class corvettes from German shipbuilding company ThyssenKrupp Marine Systems.
The other is Mr Shlomo Filber, a Netanyahu ally for more than 20 years and former director general of the communications ministry.