Bar Refaeli will undertake nine months of community service after reaching a plea deal in her tax evasion case.

The 35-year-old supermodel has reached an agreement in the long-running investigation, which will also see her and her mother, talent agent Zipi Refaeli - who will serve 16 months in prison - pay a $1.5 million fine, as well as millions of back taxes owed to the authorities.

The case against bar and her mother was first opened in 2015, but dates back to when the Israeli beauty was in her early 20s and her mom was working as her agent.

Bar - who has children Liv, three, Elle, two, and David, six months, with husband Adi Ezra - was suspected of tax evasion following concerns over her primary residence at a time when she was dating Leonardo DiCaprio and appearing in modelling campaigns around the world.

Tax law in Israel determines residency based on where a person spends most of the calendar year and the model had initially claimed she didn't spend most of her time in her home country and so ''did not have to declare her worldwide income in certain years.''

At the time the case was opened, it was reported authorities were investigating claims Bar hid the fact she was an Israeli resident and had allegedly failed to report millions of dollars in income and gifts.

Bar's lawyer initially denied the claims against her and said the case would ''clear up soon''.

Speaking in 2015, the legal representative said: ''There is no drama. In the end, this is just a civil dispute. No-one cheated anyone else. It will all clear up soon.''