In a tweet from his official @IsraeliPM account he accused the Labour leader of laying a wreath on the grave of one of those behind the Munich Olympics massacre – something Mr Corbyn has denied.
Mr Netanyahu wrote: “The laying of a wreath by Jeremy Corbyn on the graves of the terrorist who perpetrated the Munich massacre and his comparison of Israel to the Nazis deserves unequivocal condemnation from everyone – left, right and everything in between.”
The Labour leader has faced calls to quit over his controversial visit to the Palestinian Martyrs’ Cemetery in Tunisia in 2014.
Mr said he had been present when a wreath was laid to “those that were killed in Paris in 1992” but he did not “think” he was involved in laying it.
Israeli secret service Mossad was accused of killing terrorists behind the Olympics atrocity.
It was blamed for killing Atef Bseiso, a Palestine Liberation Organisation intelligence chief linked to the attack, in the French capital in 1992.
Asked about the incident during a visit to Walsall he said: “A wreath was indeed laid by some of those who attended conference to those that were killed in Paris in 1992.
“I was present when it was laid. I don’t think I was actually involved in it (laying it).
“I was there because I wanted to see a fitting memorial to everyone who has died in every terrorist incident everywhere because we have to end it.
“You cannot pursue peace by a cycle of violence. The only way you pursue peace is a cycle of dialogue.”
Palestinian terrorist group Black September killed 11 Israeli athletes at the 1972 Munich Olympics.
Home Secretary Sajid Javid earlier suggested that Mr should quit over the issue.
The widows of Israeli athletes murdered by terrorists said they were “extremely disturbed” by claims about the visit.
Jewish Labour MP Luciana Berger said: “Being ‘present’ is the same as being involved.
“When I attend a memorial, my presence alone, whether I lay a wreath or not, demonstrates my association & support.
“There can also never be a ‘fitting memorial’ for terrorists. Where is the apology?
“Being ‘present’ is the same as being involved. When I attend a memorial, my presence alone, whether I lay a wreath or not, demonstrates my association & support. There can also never be a ‘fitting memorial’ for terrorists. Where is the apology?
The row erupted after The Daily Mail published pictures of the Labour leader holding a wreath in the cemetery, which it said were taken in front of a plaque honouring the founder of Black September.
Labour said previously that Mr had made clear he was paying his respects to the victims of a 1985 Israeli air strike on Palestinian Liberation Organisation offices in Tunis.
A tweet on the official Labour press team account on Sunday said the Munich widows were “being misled”.
“Jeremy did not honour those responsible for the Munich killings.”
Mr said last year he had spoken at the conference and “I laid a wreath to all those that had died in the air attack that took place on Tunis, on the headquarters of the Palestinian organisations there”.
Writing in The Morning Star at the time of the visit, Mr said that wreaths had been laid not only at the memorial, but also “on the graves of others killed by Mossad agents in Paris in 1991”.