Amir Makhoul and Omar Said, who are suspected of spying for Hizbullah and conspiring with enemy agents, will be indicted this week, Army Radio reported Tuesday.
Makhoul's brother, former MK Issam Makhoul requested the gag order on the case be lifted, as he believes the investigation itself to be illegal.
Makhoul's remand has been extended until Friday.
Amir Makhoul was arrested on May 6 and Omar Said was taken into custody on April 24, security services said.
"They were arrested on suspicion of severe security offenses," police added. "The investigation, which is ongoing, is being coordinated with the attorney general [Yehuda Weinstein] and the Israel Police's Head of Investigations Branch, Cmdr. Yoav Seglovitch, as well as the state prosecution," police said.
The details were revealed following the partial lifting of a media gag order which was in place on all details of the investigation. The media-ban and details of the arrests had spread through the Israeli Arab community in recent days, and reignited a furious debate on secrecy and national security.
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