A new Politico report claims Israel was behind multiple surveillance devices planted near the White House last year.
Israeli Prime Minister Benjamin Netanyahu is calling the report a blatant lie.
"We have a directive. I have a directive: no intelligence collection in the United States, no spying" said Netanyahu.
According to the article, "the FBI and other agencies working on the case felt confident that Israeli agents had placed the devices..."which were likely intended to spy on President Trump and his top aides.
But on Monday, the president dismissed the story.
"I don't believe that; I don't think the Israelis were spying on us. I really would find that hard to believe our relationship with Israel has been great; 'anything's possible but I don't believe it" said President Trump.
A former U.S. intelligence official in the report said the Trump administration took no action against Israel for the alleged behavior.
Netanyahu and President Trump claim they have a close friendship.
On Monday, Netanyahu indicated his relationship with President Trump presented a unique opportunity for Israel to annex parts of the West Bank if Israelis re-elect him next week.