Ambassador to the UAE Yossi Shelley will soon be sent back to Israel, Israeli television reported Tuesday, amid diplomatic fallout over an incident involving the envoy at a bar in the Emirates several months ago.

Channel 12 news reported last week that Shelley, former chief of staff to Prime Minister Benjamin Netanyahu, had been out on a Friday night in the United Arab Emirates city of Abu Dhabi with several friends and acted in an “undignified” manner. The Emirati government heard about the alleged incident and communicated its anger to Israel through unofficial channels.

According to the report on Tuesday, people close to Netanyahu are already looking for a new role to give Shelley once he is stripped of his ambassadorship.

The Prime Minister’s Office denied the report, however, saying in a statement: “Contrary to reports, Prime Minister Netanyahu has not decided to return the Israeli ambassador to the United Arab Emirates, Yossi Shelley, to Israel.”

The details of the bar incident — which was successfully kept out of........

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