"Infrastructure Minister Benjamin Ben Eliezer has been advancing the issue of building a nuclear reactor for producing electricity," the official said, speaking on condition of anonymity.
"In view of Israel's low reserves of electricity and energy sources, the forecasts as well as the growing demand, (Ben Eliezer) is examining the idea, which requires the approval of the government," he told AFP.
Israel's electricity sector heavily relies on imported coal and oil.
Several governmental bodies have been discussing the feasibility of the project, he said. Israel's atomic agency confirmed such talks were underway, although the infrastructure ministry refused to comment.
Israel is considered the sole but undeclared nuclear power in the Middle East. Throughout the years it has kept a policy of "ambiguity" over its nuclear capabilities, although it does acknowledge having two nuclear research centres.