The Tánaiste has told Newstalk the Public Expenditure Minister "can't recall" an alleged phone call with an Israeli Minister around the Occupied Territories Bill.
The Ditch reports that while he was Finance MInister Paschal Donohoe had a phone call with his Israeli counterpart to discuss 'blocking' the bill in 2019.
The publication quotes documents leaked from the Israeli Ministry of Justice.
The Occupied Territories Bill would ban the import and sale of goods produced in settlements that are illegal under international law - including Gaza and the West Bank.
The Department of Public Expenditure told Newstalk "a call of this nature never took place".
Speaking in New York, Tánaiste Micheál Martin said the Occupied Territories Bill is currently being reviewed.
"It wasn't a meeting - my understanding from reports that I saw in The Ditch was [that it was] a phone call," he said.
"A phone call's not a meeting and I think Paschal Donohoe can't recall it.
"In any event my understanding with the Occupied Territories Bill is that the Attorney-General's advice was that EU competency governs trade and that's why this Government anyway couldn't approve of it.
"That is being reviewed and we've asked the Attorney-General to look at that."
ICJ ruling
Mr Martin said a recent ruling from the International Court of Justice also raises "real issues".
"The International Court of Justice Advisory Opinion which was published in July I think raises real issues now in terms of any engagement with Israel that would aid and abet the occupation of Palestine - which is illegal," he said.
"So that is being considered".
Mr Martin said he has already taken "some steps" arising from the ICJ opinion.
"At European Union level we have asked and [EU High Representative for Foreign Affairs] Josep Borrell has also asked the EEAS (European External Action Service) to give legal opinion on the impact of the ICJ advisory opinion in terms of the relationship between Europe and Israel and particularly the EU-Israel Association Agreement".
Mr Martin added that engagement with Israel to present the Irish position is "not unusual".
Reporting by Andrew Lowth in New York
