Ben-Gvir tried to remove the Tel Aviv Police District commander from his position hours after criticizing Tel Aviv police treatment of protestors.
The attorney-general also stressed that "this is a specific issue that has come before the High Court twice in recent years."
MQG head Dr. Eliad Shraga said that they were disappointed with the response to the petition, which deviated from her previous strictness on the matter.
Case 1000, a corruption trial in which Netanyahu is charged with fraud and breach of trust, resumed on Monday.
MQG said that the prime minister was not above the law and said that the attorney-general had walked back her position on Netanyahu's conflict of interest violations.
The legal impediment is reportedly over the overlapping of duties with the Israel Police.
The bill is being prepared for its first reading on the Knesset floor and is likely to pass its first reading this week.
Likud argued that the A-G was taking the span of the conflict of interest agreement further than her predecessor had intended.
A key part of Israel's judicial reform would change the composition and function of the Judicial Selection Committee.
NGOs had argued that since the coalition had expressed the desire to split the role of the attorney-general as part of the reform, she must have a conflict of interest in the matter.
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