A mermaid is whipping up a storm in an Israeli seaside town, after dozens of people claim to have caught sight of the mythical creature.

Now Kiryat Yam town council, near Haifa, is offering $1million reward to anyone who can prove the existence of the mermaid.

The elusive mermaid, who only surfaces at twilight, has drawn crowds of tourists with their cameras.

"Many people are telling us they are sure they've seen a mermaid and they are all independent of each other," council spokesman Natti Zilberman told Sky News.

"People say it is half girl, half fish, jumping like a dolphin. It does all kinds of tricks then disappears,"

People say it is half girl, half fish, jumping like a dolphin. It does all kinds of tricks then disappears Natti Zilberman

He insisted it was not a dolphin or whale that was making the splash.

"They say it is a female figure, it looks like a young girl," he said.

Mermaid-spotters need only provide a photo to claim the reward.