Israeli Defence Minister Israel Katz has said that Israel would not allow Egypt to "violate the peace treaty" between the two countries signed in 1979.
Katz made the remarks on Monday during a ceremony commemorating the 33rd anniversary of the death of former Israeli prime minister Menachem Begin, according to the Yedioth Ahronoth newspaper.
He acknowledged Egypt's status as "the largest and most powerful Arab country."
He noted, however, that "we will not allow them (the Egyptians) to violate the peace agreement. We will not allow them to violate infrastructure. We are dealing with this, but the agreement exists."
Egypt has not responded to Katz's statements.
The comments come "amid rumours by right-wing elements online that the Egyptian army was preparing to attack Israel unexpectedly, despite the peace agreement," according to the report.
The rumours have aroused concern among many Israelis, it added.
Israel's political attacks on Egypt
This is not the first time in recent months that an Israeli official has expressed apprehension over Egypt's investments on its own military.
Israel's UN Ambassador Danny Danon has also questioned why Egypt is expanding its defence capabilities.
"They have no regional threats. So why do they need all these submarines and tanks?" Dannon said at the end of January.
In response, Egypt's Permanent Representative to the UN, Ambassador Osama Abdel Khalek, firmly defended Egypt's military capabilities.
"The answer is clear, simple and direct: major and powerful countries like Egypt require strong and capable armies to defend their comprehensive national security through adequate and diverse armaments."
He emphasised that "Egypt was the first to establish peace in the Middle East and remains committed to it as a strategic choice, but it also possesses a powerful army and a history spanning thousands of years."
"Egypt's military doctrine is defensive, yet it remains fully capable of deterrence," he added.
On March 26, 1979, Egypt and Israel signed a peace treaty in Washington, DC following the Camp David Accords, which were brokered by US President Jimmy Carter and signed by Egyptian President Anwar Sadat and Israeli Prime Minister Menachem Begin in 1978.
However, tensions mounted in recent months as Israeli officials kept suggesting Egypt should absorb Gaza's population, a proposal Cairo rejects.
On Sunday, Avigdor Lieberman, leader of the right-wing party Yisrael Beiteinu, suggested that "the transfer of most of Gaza's Palestinians to the Sinai would be a practical and effective solution."
Israeli opposition leader Yair Lapid proposed during a speech last month at the Foundation for Defense of Democracies (FDD) think tank in Washington, DC that Egypt assume control of Gaza for up to 15 years in exchange for cancelling its more than $150 billion worth of foreign debt.
