Yitzhak Abergil was escorted on the flight by Israeli prison officers, the Jerusalem Post reported. He arrived at Ben-Gurion and was taken in chains to an Israeli prison.
His location was not released for security reasons.
Abergil served three years of his sentence for distributing Ecstasy in the United States in California. He is to serve the remainder of his sentence in Israel, with at least four more years behind bars.
Before he was extradited to the United States, Abergil was Israel's most powerful mob leader. His departure set off a wave of violence, with a number of killings blamed on a struggle for power.
The Post said Abergil gained much of his influence after he was sent to prison for murder at the age of 17, becoming a powerful figure among other inmates.
The newspaper said authorities are likely to keep him out of contact with other prisoners this time.