Israel's Benjamin Netanyahu has vowed to reject any sanctions on the country's military, after reports that the US plans to cut aid to one unit, BBC reported.
"I will fight it with all my strength," the prime minister said on Sunday.
Earlier, the Axios news site said the US would target Israel's Netzah Yehuda battalion over alleged human rights violations in the occupied West Bank.
The BBC understands any move would come under a US ban on aid to foreign units credibly implicated in violations.
When asked last week about reports that US military aid to the Israel Defense Forces' (IDF) units could be cut over allegations of human rights abuses in the occupied West Bank, Secretary of State Antony Blinken said: "I've made determinations; you can expect to see them in the days ahead".
Washington - Israel's main ally - has never suspended aid to an IDF unit before.
The Israeli military said Netzah Yehuda was operating in accordance with international law.
"Following publications about sanctions against the battalion, the IDF is not aware of the issue," the military is quoted as saying by Reuters news agency. "The IDF works and will continue to work to investigate any unusual event in a practical manner and according to law."
Israel's Defence Minister Yoav Gallant called on the US to withdraw its intention to sanction Netzah Yehuda, saying the world was watching the ties between the US and Israel more closely than ever.
"Any attempt to criticise an entire unit casts a heavy shadow on the actions of the IDF," a statement from Gallant read, adding "this is not the right path for partners and friends".
On Saturday, Axios cited three US sources with knowledge of the issue as saying that Blinken was expected to announce measures against Netzah Yehuda within days.
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