Picture used for illustrative purpose only.

The Israeli minister's comments showed the penetration of "extremism and brutality" among members of the Israeli government, the Saudi statement said.

Israeli Prime Minister Benjamin Netanyahu on Sunday disciplined a junior member of his cabinet who appeared to voice openness to the idea of Israel carrying out a nuclear strike on Gaza, where the war with Hamas is inflicting a spiralling Palestinian civilian toll.

Netanyahu's office issued a statement saying that the minister concerned - Heritage Minister Amihay Eliyahu, from a far-right party in the coalition government - had been suspended from cabinet meetings "until further notice."

His remark drew swift condemnation from around the Arab world, scandalised mainstream Israeli broadcasters and was deemed "objectionable" by a US official.

The League of Arab States said in a statement: "The racist statements of Israeli Minister Eliyahu are revealing. Not only does he admit that they possess a nuclear weapon, but he also confirms the reality of the Israelis’ abhorrent racist view towards the Palestinian people."

Asked in a radio interview about a hypothetical nuclear option, Eliyahu had replied: "That's one way."

"Eliyahu's statements are not based in reality. Israel and the IDF (military) are operating in accordance with the highest standards of international law to avoid harming innocents. We will continue to do so until our victory," Netanyahu's office said.

Agencies