Yedioth Ahronoth correspondent Nahum Barnea revealed Friday morning that the ties between the general security service and Teitel had lasted several months, but were stopped as they did not yield anything.
According to the report, Shin Bet officials contacted Teitel in order to use him as a source of information, after he had already been questioned on suspicion of being involved in the 1997 murder of two Palestinians.
The Shin Bet confirmed in response that the organization had been in touch with Teitel for several months.
"Yaakov Teitel was handled by the Shin Bet even after his interrogation in the year 2000," the agency said in a statement. "As part of our inspection of him and in light of his ties with extreme right-wing elements, we held several meetings with him which did not yield a thing, and immediately afterwards the ties were cut."
On Sunday it was cleared for publication that Teitel, 35, had been arrested for allegedly carrying out a series of domestic acts of terror over the past few years.
In addition to existing suspicions, including the murder of two Palestinians, assaulting Prof. Ze'ev Sternhell and a teen from a messianic family in Ariel, placing explosives and inciting against the gay and lesbian community, Teitel also appears to be suspected of the murder of two traffic police officers.