The Israeli prime minister Benjamin Netanyahu's 12-year premiership has been threatened by corruption allegations after Israel's police recommended that he be indicted on charges of bribery and breach of trust.

After a 14-month investigation into two cases of alleged corruption, Israel's attorney general will examine the evidence and then decide whether to indict, reportedly in the coming weeks.

A police statement last night said that enough evidence had been gained against the prime minister regarding the crimes of 'bribery, fraud, and breach of trust'.

Almost immediately, Netanyahu held a defiant press conference in Jerusalem, emphatically denying any wrong-doing.

Netanyahu said that this was merely the latest attempt to remove him from office, and it would fail. 'All these attempts end up with nothing because I know the truth. I tell you, also this time, things will end up with nothing.

'I will continue to lead Israel responsibly and faithfully,' he added, also saying that he plans to run in elections that must be held by the end of next year.

In recent months, police have questioned the 68-year-old prime minister several times at his official residence in Jerusalem regarding two cases in which he is a suspect.

Case 1000, known as the 'gifts affair', involves claims that he and his family received valuable gifts from international billionaires, including pink champagne, expensive cigars and jewellery for his wife. The alleged wealthy benefactors include the Hollywood producer and media magnate Arnon Milchan as well as the Australian businessman James Packer.

Police said in a statement that the prime minister had accepted gifts valued at 750,000 shekels (£150,000, $208,300) from Milchan, and 250,000 shekels (or £51,000, $70,822) from Packer. In return, Netanyahu had allegedly helped Milchan gain a US visa and Israeli tax breaks.

The other case, 2000, concerns the publisher of a leading Israeli newspaper, Yedioth Ahronoth, whereby Netanyahu, in secret talks, allegedly requested positive coverage in exchange for damaging a competitor, the pro-Netanyahu freesheet Israel Hayom.

Police said that both Milchan and Mozes could be charged with bribery. Neither made an immediate comment.