A 'softer' version of the Nakba Law will likely be approved Sunday by the Ministerial Committee for Legislation and Law Enforcement, Army Radio reported on Sunday morning.
The new version will avoid imposing prison sentences on those who mark the Palestinian 'Nakba,' or "catastrophe" on Israel's Independence Day, but will revoke funds from organizations who plan events in which the existence of Israel as a Jewish state is rejected.
The previous version put forward by Israel Beiteinu MK Alex Miller would have made it illegal to mark Israel's Independence Day as a day of mourning.
That bill was approved by the committee in May but it was decided not to submit the bill to the Knesset until a less extreme draft was approved.
Rebecca Anna Stoil contributed to this report