Naftali Bennett appeared to criticise diaspora Jews as he prepares to spearhead a new initiative to persuade French Jews to make aliyah.
In a cabinet meeting on Sunday, Mr Bennett said there was an “unprecedented crisis” between the Jewish State and the diaspora, according to reports.
Mr Bennett, who heads both the Education and Diaspora ministries in Benjamin Netanyahu’s government, said: “We’re used to being told that it’s because of [prayer rules at] the Western Wall, the Palestinian issue and other ideological controversies. It’s not correct.
"There is a problem of serious assimilation, and a growing apathy among Jews in the diaspora, both about their Jewish identity, and their connection to Israel. That's the key story and it's a national challenge."
A spokesperson for Mr Bennett denied that the minister's statements amounted to an attack on diaspora Jewry. "Minister was not attacking anyone, he was stressing the problem of assimilation and then listed a number of projects the Ministry is investing in to help combat it," he said.
The number of Jews living in France is estimated to be 470,000 – the largest community in Europe.
Rising levels of antisemitism in the country, coupled with a number of high-profile attacks on Jews, has seen many in the Jewish community to consider emigration.
The Jewish State experienced a spike in emigration from France between 2013 and 2015, partially motivated by a depressed economy, besides Jew-hatred – but numbers have declined steadily since.
After being tapped up by the Prime Minister to lead the renewed initiative aimed at France’s Jews, Mr Bennett told the cabinet that there are up to 200,000 people eager to move to Israel, but that the state was not in a position to absorb them.
This was disputed by Israeli officials who spoke to Haaretz, who told the newspaper at most 50,000 French Jews were considering moving to Israel today.
Mr Bennett himself briefly threatened to quit the government – and thus trigger its collapse by depriving it of its Knesset majority – in the wake of the resignation of Defence Minister Avigdor Lieberman.
After issuing Mr Netanyahu an ultimatum to hand him Mr Lieberman’s vacated position, he backed down after he was accused of “irresponsibility”.
Mr Netanyahu has taken the position of Defence Minister.