The prime minister announced the move to ministers, saying the war cabinet had been established as part of an agreement in which the moderate politician Benny Gantz and his National Unity party joined an emergency coalition last year.
Its disbanding was confirmed by Israeli officials amid mounting discontent over conduct of the war in Gaza and calls from anti-government groups for a week of protests.
David Mencer, a spokesperson in the prime minister's office, said the war cabinet was a "prerequisite" for Gantz, a former army chief and defence minister, to join a unity government. He added: "So with Mr Gantz leaving government, there is no need for the cabinet. Its duties will be taken over by the security cabinet."
Gantz, one of the members of the war cabinet, quit the coalition a week ago, along with Gadi Eisenkot, one of the three observers in the body.
Netanyahu is now expected to hold consultations about the Gaza war with a small group of ministers, including the defence minister, Yoav Gallant, and the strategic affairs minister, Ron Dermer, who had been in the war cabinet.
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