Israeli Prime Minister Benjamin Netanyahu has sent a letter to Egypt's newly sworn-in President Mohamed Morsi, urging him to maintain peace between the two countries, following an Iranian report last week that Morsi was planning to reconsider the peace deal with Israel, Israeli daily Haaretz reported.

Netanyahu, reportedly, stressed Israel's desire to continue cooperation and to strengthen the peace and emphasized that honoring the (peace) agreement is in the interest of both countries, Haaretz reported citing an Israeli source who spoke on condition of anonymity.

Netanyahu congratulated Morsi on his election victory and offered to cooperate with the new government in Cairo and expressed hope that both parties would observe the Egyptian-Israeli peace treaty, the report said.

Although Morsi, who resigned from the Brotherhood to take the top job, has said that he has plans to change his pro-Hamas, anti-Zionist, anti-Copt tune to transform Egypt into a truly democratic nation, a report published last week by the Iranian news agency Fars raised concerns in the West and the Middle East. Fars reported that Morsi was planning to reconsider the peace deal with Israel and would build ties with Iran to create a strategic balance in the Middle East, which his spokesperson refuted as being without foundation.

The office of Egypt's president is planning to take legal action against the Iranian news agency for fabricating an interview with him, Mena news agency reported Friday. Mena quoted Mursi's spokesman, Yasir Ali, as saying the interview was entirely made-up.

Iranian President Mahmoud Ahmadinejad had earlier congratulated Mursi onr the election win, while adding: I emphasize expanding bilateral ties and strengthening the friendship between the two nations, Iranian media reported.

Haaretz said Israeli officials had earlier planned to set up a telephonic conversation between Netanyahu and Morsi. But after consulting with Washington, Israeli administration has dispatched an envoy for meeting with Egyptian officials, the report said.

US President Obama, who spoke over phone to Morsi last week, pledged to work with the Egyptian elected government on the basis of mutual respect.