On Wednesday, the supreme court decided to bar Netanyahu's ally and leader of the ultra-Orthodox Shas party from serving as a minister after he was convicted of tax fraud and received a one-year suspended sentence in 2022.
Netanyahu said in his address to Deri that he was "compelled, with a heavy heart" to observe the court ruling and pledged to find "any legal way" whereby his ally "can continue to contribute to the State of Israel," as quoted by Israeli newspaper.
Deri, in turn, said "it was clear" to both himself and the prime minister that he would leave the office, adding that "no judicial decision will prevent me from serving and representing" the Shas party's voters, according to the media outlet.
The Israeli interior and health minister will legally step down on January 24, the newspaper added.
On Thursday, Chief Justice Esther Hayut said that Deri was not fit to serve due to "serious corruption offenses" on his record and that having him in charge of two of the most important ministries in the new coalition government, which was sworn in last month, damaged the country's image.