One of Israeli Prime Minister Benjamin Netanyahu's top defense lawyers dropped his client Wednesday, sources said, after the premier was denied permission to receive private funding for his legal team.

Netanyahu, who is standing trial over corruption allegations, which he denies, had sought NIS 10 million ($2.9 million) from his US billionaire friend Spencer Partrich to help cover legal fees.

But following a recommendation from Israel's attorney general, a committee in the state comptroller's office blocked Netanyahu from accepting the loan on grounds it amounted to an improper gift to a government official. 

The 70-year-old premier, whose personal fortune has been estimated at more than $10 million, was also ordered to return some of the money he received from his American cousin Nathan Milikowsky to cover legal expenses. 

Following those setbacks, defense lawyer Micha Fettman resigned from the right-wing premier's defense team. Read more at i24