"It is understood that Israeli pilots have been refusing to take Mr Netanyahu to the UK," the UK government source said, as quoted by the newspaper.
The pilots' refusal is believed to be linked to Netanyahu's proposal to restructure the Israeli legal system, which has caused widespread protests in the occupied territories for almost 11 weeks.
On Thursday, demonstrations against the reform took place near Netanyahu's residence and houses of other cabinet members.
The draft law presented by Justice Minister Yariv Levin in January, if adopted, will significantly curtail the powers of the Israeli supreme court and give the government control over the procedure of the appointment of judges.