In return, Bezeq's subsidiary news site, Walla, allegedly provided positive Netanyahu coverage.
The Bezeq case, known as Case 4000, is the most serious of all those of which Netanyahu has been accused.
While it is now up to Attorney-General Avichai Mandelblit to formally prosecute those involved, the announcement ramps up pressure on Netanyahu, who faces a raft of legal woes.
Netanyahu last month was almost forced to call elections after a key partner withdrew from his coalition to protest a cease-fire with the Hamas militant group in Gaza.
Police said there was evidence to charge Netanyahu with bribery, fraud, breach of trust and unlawful acceptance.
There was, however, insufficient evidence to charge Mr Netanyanu's son Yair, police said.
"Netanyahu and those close to him bluntly intervened, sometimes on a daily basis, with the content being published on the Walla news website, and sought to influence the appointment of senior employees (editors and reporters), while using their ties to Shaul and Iris Elovitch", the police statement read.
This is the third such police recommendation against Netanyahu in recent months.
"I'm sure that in this case the relevant authorities, after examining the issue, will reach the same conclusion: that there was nothing because there is nothing".
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Police in February recommended indicting Mr Netanyahu in two other corruption investigations. Now he appears to be facing the challenge of both - legal charges and an election. Netanyahu holds a solid lead in all opinion polls, and a victory would make it more hard for Mandelblit to indict and potentially force out a newly re-elected leader.
Netanyahu has been prime minister for a total of more than 12 years, from 1996 to 1999 and again since 2009.
Hefetz reportedly told the police he would at times speak with Elovitch up to seven times a day in his capacity as Netanyahu's adviser.
Netanyahu denies any wrongdoing and claims he is the victim of a media witch hunt.
The police's recommendation has triggered calls for Netanyahu to resign immediately. The White House is trying to build a coalition of Middle Eastern leaders to deter Iran, to that end encouraging the warming of relations between Israel and Arab states that outwardly shun it and sidelining the Israeli-Palestinian conflict.
They also recommended charges be brought against Elovitch, members of his family and members of his Bezeq management team.
Netanyahu is suspected of having received luxury gifts from businessmen overseas in Case 1000.
The prime minister has been repeatedly questioned by police in the three corruption investigations.