Israel may tear up much of the unprecedented military cooperation deal it signed with Moscow at the start of this month due to anger over Moscow's rigid stance on supplying naval missiles to Israel's enemy Syria.
"We will have to reconsider all proposed deals with Russia. Moscow did not show the necessary understanding of our requests," a senior Israeli defense source quoted on aviation business magazine Flight International's website said on Thursday.
Earlier this week, Moscow confirmed it would supply P-800 Yakhont supersonic naval cruise missiles to Syria, despite vociferous Israeli objections to the deal which was signed in 2007.
The first victim of the fallout could be Russia and Israel's planned $300 million deal to set up an unmanned air vehicle (UAV) manufacturing facility in Russia.
Russia has spent around $50 million on Israeli-built UAVs this year to train operators and develop tactics for using modern systems.
It has also expressed interest in buying more Israeli UAV systems, including the IAI Heron.
The Russian forces have previously expressed dissatisfaction with locally manufactured UAVs.