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In an early morning tweet, Mr Trump said he had the "absolute right" to share facts pertaining to terrorism.
Under current US law, the president has the power to declassify information as he or she sees fit.
He has also been accused of colluding with key media owners to shape favourable coverage.
A leading Conservative MP, who also serves as Britain’s special envoy for post-Holocaust issues, has demanded that a Labour colleague who called for the dismantling of Israel be booted from a panel investigating the rise of anti-Semitism in the UK.
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Mr Trump departs on Friday for his first trip abroad as president, during which he is expected to visit Israel.
Oren Hazan, an MK from Mr Netanyahu’s Likud party, announced plans for laws “ensuring the criminal accountability of journalists who fabricate stories”, amid unfavourable coverage of corruption investigations concerning the Prime Minister.
“It cannot be that journalists, reporters, researchers or any pisher can publish whatever they want,” he told the Knesset.
In a statement to the New York Times, Israeli ambassador Ron Dermer reaffirmed that Israel has full confidence in its intelligence-sharing relationship with the US.
During a White House press briefing, US National Security Adviser HR Mc Master said that the president "wasn’t even aware where this information came from" and "wasn’t briefed on the sources and methods".