Former Israeli prime minister Yair Lapid has claimed Benjamin Netanyahu tried to persuade him to give Hollywood moguls millions in tax breaks, a court has heard. 

The Israeli opposition leader claimed Netanyahu tried to persuade him twice to back the proposed new laws. 

He made the claim during an ongoing trial of corruption charges against Netanyahu.

Netanyahu is accused of fraud, breach of trust and accepting bribes in three separate scandals involving powerful media moguls and wealthy associates. The Israeli prime minister has denied any wrongdoing.

In this particular case, it is alleged Netanyahu used his position of power to further Hollywood mogul Arnon Milchan's interests in exchange for gifts.

It is alleged that the offer represented a conflict between his public duties and personal friendship with Milchan.

Yair Lapid arrives to testify in the trial against Israeli prime minister Benjamin Netanyahu

Yair Lapid (Photo: Flash 90)

It is alleged that Netanyahu did personal favours for the Israeli businessman, including extending Israeli regulations exempting those who make aliyah from declaring foreign income and asking US officials to extend Milchan's US resident's permit, according to Associated Press.

Addressing an Israeli Court on Monday, Lapid said Milchan and his attorneys had tried first without success to persuade him that extending the tax breaks for a decade would be good for Israel.

Lapid claims that Netanyahu then raised the matter with Lapid twice. On one occasion, Lapid told Netanyahu that it wasn't going to happen, and the Israeli prime minister responded by saying that it was "a good law."

Netanyahu, Israel's longest-serving prime minister, said he was not acting in Milchan's personal interests and even occasionally acted against them. He says the exchanges of gifts were just friendly gestures.

Milchan is expected to testify in the case in a video call from his home in London later this month.