The Israeli Prison Service, IPS, is being added to this year's list. Other Israeli agencies are being monitored for potential addition at a later stage, the Israeli newspaper reports.
In doing so, the authority joins groups such as Hamas and IS and state actors in Sudan and Congo-Kinshasa, among others. Israel reacted angrily.
"This is a moral disgrace and represents a complete collapse of any credibility the UN has left," the country's UN ambassador, Danny Danon, said to The Jerusalem Post.
The list has not yet been published.
In March last year, a UN commission found in a report that Israel is using sexual and reproductive violence against imprisoned Palestinians.
