Prime Minister Benjamin Netanyahu called in Israel's top diplomat and the Mossad director on Sunday to broker a truce on Sunday, Israel Radio reported.
The Foreign Ministry and security services are said to have been engaged in an acrimonious turf war that ended in a total impasse.
Foreign Minister Avigdor Lieberman reportedly suspended all cooperation with the Mossad late last week arguing Israel's foreign intelligence agency had "interfered in, and circumvented, his realm of responsibility."
A government spokesman had no immediate comment on the reported meeting of Netanyahu, Lieberman and Mossad director Tamir Pardo.
But one official, who spoke on a condition of strict anonymity, said the power struggle concerned a diplomatic back-channel that the Mossad had helped set up for the Netanyahu government abroad.
Lieberman has been regularly sidelined by Netanyahu in contacts with key foreign allies, and sensitive negotiations.
A Mossad officer led last month's Egyptian-mediated prisoner exchange talks with Hamas for over a year without informing foreign ministry officials a negotiation was taking place.
Also, it was recently reported Lieberman was denied access to critical, relevant intelligence documents during his tenure as Minister of Strategic Affairs due to unspecified "security concerns."