Sarkozy, who has labored to improve French relations with Israel, was overheard making the comments during a conversation with President Barack Obama at the Group of 20 summit last week.
Obama, in remarks via a French interpreter, was not heard objecting to the characterization.
Several French-speaking journalists, including one from The Associated Press, overheard the comments but did not initially report them because they were deemed private under French media traditions.
A French website first reported the comments Tuesday.
Sarkozy's office, Netanyahu's office and the U.S. Embassy in Paris would not comment Tuesday.
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