A military court in Tel Aviv found Lieutenant Colonel Omar al-Hayeb guilty of the offenses of severe espionage and contact with a foreign agent, as well as two other drug dealing offenses.
However, the decorated Bedouin officer was acquitted of treason and another drug dealing offence.
The judges ruled al-Hayeb's version was false and synthetic. One judge said the officer cannot be convicted of espionage, but other judges disagreed.
Following the court session, al-Hayeb left the courtroom furious.
"I am innocent, I didn't speak to Hizbullah, and I have done nothing."
He added that "Justice was not done here. There is only one truth and I will fight for it."
"After all, several years ago I was hurt in a Hizbullah attack, so why would I go and help them now? All the claims by the prosecution that I spied are false," he said. Al-Hayeb's lawyers said they intend to appeal the conviction.
Al-Hayeb, 43, a father of four and a resident of the village of Beit Zarzir, is hailed as one of the top officers that the Bedouin community has produced.
He spent most of his service in a trackers unit stationed along the northern border, until he was seriously injured in 1996 while in pursuit of Hizbullah terrorists. Al-Hayeb lost one of his eyes in the incident and has since been limited in bodily movements. After a three-year recuperation period he returned to the army and was promoted to the rank of Lieutenant Colonel.