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His arrest came roughly six months after police recommended that Netanya Mayor Miriam Feirberg be indicted for bribery, fraud and breach of trust.
Salah was arrested last week in connection with a sermon he delivered that police say constituted incitement.
"Whoever wants a more thorough explanation, let him ask what used to happen to some children in Europe, whose blood was mixed in with the dough of the [Jewish] holy bread."
'We arrested a hard core of rioters who took an active part in the violent riots directed against the security forces,' Police said.
Protesters held up signs accusing PA forces of working as Israeli "spies" and criticizing the PA for "handing over" Arab terrorists to Israel.