The report came after Israel advised its citizens yesterday to leave Turkey "as soon as possible," citing the potential for jihadist attacks.
"Terrorists from the so-called Islamic State have advanced plans to murder Jewish children in Turkey, targeting kindergartens, schools and youth centres," Sky reported.
"The most likely target of an attack is Istanbul's synagogue in Beyoglu, which also has a community centre and a school attached to it."
Asked by AFP to comment, Israeli Prime Minister Benjamin Netanyahu's office and Israel and Turkey's foreign ministries refused.
An Iranian was also killed and 39 people wounded when a man blew himself up on a shopping street in the heart of the city.
The Turkish government said the bomber had links to IS.
The group has been blamed for four bombings that have rocked Turkey in the past eight months, including a massacre at a peace rally in the capital Ankara in October that claimed 103 lives.
Sky reported on its website that unidentified "intelligence officials" said that a fresh attack was imminent, based on information from six IS operatives arrested in southern Turkey.
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