The 72-year-old was taken to the city’s Shaarei Tzedek hospital after feeling unwell at synagogue services for the Jewish fasting day of Yom Kippur.
He underwent medical examinations and stayed overnight for observation. The hospital said his test results were normal.
The former leader is now returning to work and has already been on a morning walk, his Likud party said, adding that he thanked the hospital’s cardiology department and intensive care unit for their help.
His hospital stay comes less than a month before Israel holds its fifth national election in under four years.
The November 1 poll, could see Mr Netanyahu, who is on trial for corruption charges, return to power. He was previously prime minister from 1996 to 1999 and again from 2009 until last year.
The current prime minister is Yair Lapid.
Elsewhere, Israel‘s top cabinet ministers will convene on Thursday to discuss a prospective US-mediated border demarcation deal with Lebanon addressing a disputed Mediterranean gas field, but will not take a final vote on it, a senior Israeli official said.
The draft deal, which has not been made public, has had a mostly warm preliminary reception by the Israeli and Lebanese governments. But there has also been domestic opposition voiced in both countries, which are technically at war.
Deputy foreign minister Idan Roll said Israel‘s security cabinet, a generally secret forum for approving key strategic affairs, would meet at 4 pm (1300 GMT) to discuss the draft.
“The main points of the deal, and the matters we support, will be presented to it,” Roll told Ynet TV about the forum.
But making clear that Israel did not deem the deal final, he added: “There are still caveats … The deal will be brought to the security cabinet, then it will be brought to the (full) cabinet, then it will be submitted to parliament.”