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Far-right Israeli ministers Itamar Ben-Gvir and Bezalel Smotrich engaged in a heated argument over funding for new prison units on Wednesday, Israeli outlet Ynet reported.

National Security Minister Ben-Gvir had demanded that a special budget be given for his plan to build 5,000 new prison spaces - a request that was refused by Finance Minister Smotrich, according to the report.

Smotrich reportedly told Ben-Gvir to use funds and staff already allocated to his ministry, prompting an angry retort from the Jewish Power party leader.

"Are you serious? We’ve built 3,000 detention spaces—more than the Prison Service has achieved in years. Do you expect us to carry prisoners to our homes?" Ben-Gvir was quoted by the outlet's Hebrew-language website as saying.

Smotrich then insisted that the minister "take advantage of unused money".

Sources who spoke to Ynet said Prime Minister Benjamin Netanyahu intervened by dismissing other cabinet members from the meeting and ordering that 470 prison spaces be constructed, at a cost of around 40 million shekels.

The issue of extra funding remains unresolved, with sources close to Smotrich saying that the project will be funded by Ben-Gvir's National Security Ministry.

The issue of prison overcrowding has plagued Israel's government and security services, exacerbated by thousands more Palestinians being detained and imprisoned from the Gaza and West Bank since October.

Amid a spat with Israel's Shin Bet internal security service on the state of Israel's prisons in July, Ben-Gvir boasted of the squalid conditions Palestinians are held in and reiterated his proposal of executing Palestinians held in detention.

"Since I assumed the position of Minister of National Security, one of the highest goals I have set for myself is to worsen the conditions of the terrorists in the prisons, and to reduce their rights to the minimum required by law," Ben-Gvir said on X.

"Everything published about the abominable conditions" of Palestinians in Israeli jails "was true", he added, boasting that he had reduced food and shower times for prisoners, removed electrical devices, and stopped financial deposits.

Smotrich and Ben-Gvir, both settlers with extreme views on Palestinians, were appointed as cabinet ministers after helping Netanyahu return to power in 2022 as part of Israel's most far-right government in its history. 

The two have also fiercely opposed ceasefire talks with Hamas in Gaza and called for Jewish settlements in the coastal Palestinian enclave.