Houthi military spokesman Yahya Sarea said the group struck with a new hypersonic ballistic missile that travelled 2040km in just 11 and a half minutes.
An Israeli military official said the missile was hit by an interceptor and fragmented in the air, rather than being completely destroyed.
Air raid sirens had sounded in Tel Aviv and across central Israel moments before the impact about 6.35am, sending residents running for shelter.
Loud booms were heard.
Missile pieces landed in fields and near a railway station.
There were no direct casualties but nine people were lightly hurt while seeking cover.
A Reuters witness saw smoke billowing in an open field in central Israel.
Following the sirens that sounded a short while ago in central Israel, a surface-to-surface missile was identified crossing into central Israel from Yemen and fell in an open area. No injuries were reported.— Israel Defense Forces (@IDF) September 15, 2024
At a weekly cabinet meeting, Netanyahu said the Houthis should have known that Israel would exact a "heavy price" for attacks on Israel.
"Whoever needs a reminder of that is invited to visit the Hodeida port," Netanyahu said, referring to an Israeli retaliatory air strike against Yemen in July for a Houthi drone that hit Tel Aviv.
The Houthis have fired missiles and drones at Israel repeatedly in what they say is solidarity with the Palestinians, since the Gaza war began with a Hamas attack on Israel in October.
The drone that hit Tel Aviv for the first time in July killed a man and wounded four people.
Israeli air strikes in response on Houthi military targets near the port of Hodeidah killed six and wounded 80.
Previously, Houthi missiles have not penetrated deep into Israeli air space, with the only one reported to have hit Israeli territory falling in an open area near the Red Sea port of Eilat in March.
Israeli authorities say a border police officer was stabbed in the Old City of Jerusalem. (AP PHOTO)
Israel should expect more strikes in the future "as we approach the first anniversary of the October 7 operation, including responding to its aggression on the city of Hodeidah," Houthi spokesman Sarea said.
The deputy head of the Houthi's media office Nasruddin Amer said in a post on X on Sunday that the missile had reached Israel after "20 missiles failed to intercept" it, describing it as the "beginning".
An Israeli border police officer was stabbed in the Old City of Jerusalem on Sunday in what police said was a "terror" attack.
The attack took place near the Damascus gate and the officer was taken away for medical treatment, police said citing medical sources.
"Border police officers engaged with the terrorist, neutralised him with gunfire and concluded the attack swiftly and professionally," police said.
