Israeli wildlife officials dismissed the claims as ludicrous and expressed concern about the bird's fate.
Last month, Egyptian officials implied the Israeli spy agency Mossad was to blame for shark attacks off its coast.
The vulture, which can have a wing span of up to 265cm (8ft 8in), was caught after it landed in the desert city of Hyaal a few days ago.
When locals discovered the GPS transmitter, they suspected the worst and handed it over to the security forces, said Israel's Ma'ariv newspaper.
Conspiracy theories quickly began circulating in Saudi newspapers and on websites that the bird was involved in espionage.
Israeli officials told Ma'ariv they were "stunned" by the allegations and concerned that the bird could meet a horrible punishment in the notoriously severe Saudi justice system.
End Quote Unnamed official Israeli Park and Nature AuthorityI hope they release the poor thing”
"Now, this poor bird is paying a terrible price. That's very sad," said the unnamed expert.
"I hope they release the poor thing."
The vulture is the latest animal to be accused of being an unwitting Mossad operative.
In December, the governor of Egypt's South Sinai province, Mohamed Abdul Fadil Shousha, suggested the spy agency may have had a hand in a string of deadly shark attacks off the coast of the Sharm el-Sheikh resort.
He said it was "not out of the question" that Mossad had put the killer shark in the area.
The Israeli foreign ministry dismissed that allegation, saying the governor "must have seen Jaws one time too many, and confuses fact and fiction". bbc
there's no command from People for the Ethical Treatment of Animals, or PETA