In a statement, Netanyahu says he wants to see Major General David Zini as the new spy chief.
"Zini has served in many operational and leadership positions within the IDF", it says in a press release from the Prime Minister's office.
Netanyahu is thus defying Attorney General Gali Baharav-Miara, who on Wednesday prevented the government from appointing a new Shin Bet chief until the matters surrounding the outgoing Ronen Bar have been cleared up.
"The appointment process is flawed", she says in a statement now.
Opposition leader Yair Lapid is urging David Zini to decline the job for the time being.
"Netanyahu is in a serious conflict of interest when it comes to appointing a head of Shin Bet", he says in a statement.
Israel's Supreme Court ruled on Wednesday that Netanyahu's attempt to dismiss Ronen Bar in March was made through a "flawed and illegal process". Netanyahu had, according to the court, at the time, among other things, a conflict of interest due to Shin Bet's ongoing investigation into the Prime Minister's aides' connections to Qatar and suspected bribery.