Israeli police will look into the purchase of German submarines after it was revealed that Prime Minister Benjamin Netanyahu's attorney had represented the company, raising concerns over a possible conflict of interest.

The Justice Ministry announced the preliminary inquiry into the $1.5 billion deal on Wednesday.

Suspicions of impropriety were heightened when former Defense Minister Moshe Yaalon said he was sidelined on the purchase plans — which went forward after he was replaced earlier this year.

Israel's Channel 10 reported this week that Netanyahu had personally intervened in the awarding of the contract. Netanyahu denied the report, and said he was only made aware of his attorney David Shimron's connection to the firm in recent days.