Israel's prime minister has greenlighted work to begin on planned railroad network that will connect the Jewish state to Saudi Arabia, Israeli state-run TV reported on Saturday.

According to a translation of the report, Binyamin Netanyahu and Transportation Minister Yisrael Katz have agreed to "immediately launch" the project.

"The channel's political pundit Dennis Weiss stressed that the administration of US President Donald Trump supports the project," the report said.

"He added that it will strengthen relations with 'moderate nations' in the region and fight the threat of Iran," it added.

Under the proposal, goods could travel by rail from Israel's port of Haifa through Jordan to Saudi Arabia and other Gulf states.

Katz last year spoke to Saudi-funded news website Elaph about the freight railway network, saying he wanted to revive the historic Hejaz railway.