The Health Ministry reported 6,861 new cases on Wednesday as a raging outbreak showed no signs of slowing.
Israel, a country of some nine million people, now has one of the world’s highest rates of coronavirus on a per capita basis, and health officials said hospitals are quickly approaching capacity.
The government last week imposed a nationwide lockdown that closed schools, shopping centres, hotels and restaurants.
The coronavirus cabinet was meeting later to discuss further tightening the restrictions.
Ahead of the meeting, Israeli Prime Minister Benjamin Netanyahu said in light of the rapid spread of the virus he will seek a “a broad general closure and significant tightening of restrictions immediately”, including the closure of large parts of the economy.
Israel won international praise for its handling of the outbreak last spring, moving quickly to seal its borders and impose a lockdown that appeared to contain the virus.
But the government reopened the economy too quickly, and a new outbreak has quickly spread throughout the summer.
The economy, meanwhile, has not recovered from a serious downturn caused by the first lockdown.
A new poll released on Wednesday by think tank the Israel Democracy Institute found only 27% of Israelis trust Mr Netanyahu to lead the country’s effort against Covid-19.
That compares with 57.5% who trusted him in early April.
The survey interviewed 754 adults and had a margin of error of 3.7 percentage points.
The Health Ministry has instructed hospitals to delay non-essential surgeries and to open additional coronavirus wards as the number of serious cases continues to rise.
Beyond further limiting economic activity, officials have been discussing shuttering synagogues and clamping down on protests – both of which risk sparking a public backlash.
The limits would come at a time when Israeli Jews are celebrating the High Holidays and when weekly demonstrations have been held against Mr Netanyahu and his handling of the coronavirus crisis.
The ongoing protests have divided the country, with religious leaders saying the public is being unfairly targeted by restrictions on public prayer while Mr Netanyahu’s opponents continue to hold large public demonstration.
Demonstrators say Mr Netanyahu’s supporters are using the outbreak as an excuse to muzzle their democratic right to protest.
Deputy health minister Yoav Kisch said restrictions would have to be tightened in the near future.
“Educational institutions will be closed, the economy will be limited to essential work, synagogues will have no indoor prayers, with arrangements for outdoor prayer, and demonstrations will be allowed without protesters travelling between cities,” he told Channel 12 TV.
“Everyone will demonstrate where he wants, will pray where he wants and will stay at home. That is what is required now.”