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Centrist party leader Yair Lapid is reportedly close to reaching a coalition agreement with the ultra-nationalist leader Naftali Bennett.
Leaders from Mr Bennett's party spoke in favour of the deal on Sunday.
Mr Lapid, 57, has until Wednesday to form a new coalition government.
Israeli media reports suggest both sides have inched closer towards a deal that would see Mr Bennett, 49, serve as prime minister for two years before being replaced by Mr Lapid for the second half of the term.
Mr Bennett is due to deliver a statement on Sunday evening in which he is expected to formally declare his support for the agreement.
www.bbc.co.uk...
Mr Bennett, who leads the Yamina party, made his announcement in a televised address.
"I will do everything to form a national unity government with my friend Yair Lapid," he said.
The proposed coalition would bring together factions from the right, the left and the centre of Israeli politics. While the parties have little in common politically, they are united in their desire to see Mr Netanyahu's time in office come to an end.
Speaking shortly after Mr Bennett's announcement, the prime minister accused Mr Bennett of carrying out"the fraud of the century" - a reference to the Yamina leader's previous public promises not to join forces with Lapid.
www.bbc.co.uk...
A last-gasp legal challenge by Israeli Prime Minister Benjamin Netanyahu to thwart a bid by a rival rightist to head a new government was rejected on Tuesday as his opponents raced to seal a pact that would unseat him.
www.reuters.com...
Israeli opposition parties have reached an agreement to form a new government that would end Benjamin Netanyahu's 12-year tenure as prime minister.
Yair Lapid, leader of the centrist Yesh Atid party, announced an eight-faction coalition had been formed.
Under a rotation arrangement, the head of the right-wing Yamina party, Naftali Bennett, would serve as prime minister first before handing over to Mr Lapid.
There still needs to be a parliamentary vote before the government is sworn in.
In a statement, Mr Lapid said he had informed President Reuven Rivlin of the agreement, adding: "I pledge that this government will work in the service of all Israeli citizens, those who voted for it and those who did not.
"It will respect its opponents and do everything in its power to unite and connect all parts of Israeli society."
An image carried on Israeli media showed Mr Lapid, Mr Bennett and Arab Islamist Raam party leader, Mansour Abbas, signing the agreement, a deal many thought impossible.
www.bbc.co.uk...