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Israel's health ministry dismissed any link to Netanyahu's reported visit to the futuristic Red Sea city of Neom.
The visa exemption agreement, reportedly already ratified by the UAE, will now go into effect after being approved by Israeli officials.
The Senate has voted overwhelmingly to maintain the US embassy to Israel in Jerusalem, with only three senators including Bernie Sanders dissenting.
Israel's lawmakers hurried to negotiate a last minute deal to delay a budget deadline and avoid sending the country to its fourth parliamentary elections in less than two years.
Bahrain will be the fourth Arab state to normalise relations with Israel following Egypt (1979), Jordan (1994) and the UAE (2020).
Israel, which uses the stealth aircraft to carry out operational attacks against Iranian targets in Syria, regards the sale as a threat to its regional military superiority.
President Trump told a news conference the sale was now "under review", given the new dynamic between Israel and the UAE.
Contrary to official statements from Manama, Bahrain's Foreign Minister Abdellatif Al-Zayani was in the contested city of Jerusalem during his visit to Israel.
The US Secretary of State will be the first top American diplomat to visit Golan Heights.
The Israeli president has criticised the unity government of in-fighting ahead of the elections.