Official results showed Netanyahu capturing 72% of the votes, compared with 28% for challenger Gideon Saar.
Netanyahu will now remain Prime Minister until new elections in March 2020. About 49% of Likud’s 1,16,000 eligible members voted to choose their leader.
Likud and the centrist Blue and White were near neck-and-neck after polls in March and September with neither able to form a coalition in the country’s proportional parliament.
Netanyahu, who is the country’s longest serving leader is facing mounting scrutiny after being indicted in three corruption cases last month.