Netanyahu clinches deal to form new Israeli government

Israel's Prime Minister Benjamin Netanyahu addresses the plenum at Israel's parliament in Jerusalem, May 4, 2015. Israeli Foreign Minister Avigdor Lieberman said on Monday he would not join the new coalition government being formed by Netanyahu, citing disputes over legislation. [Photo/Agencies]

JERUSALEM - Prime Minister Benjamin Netanyahu clinched a deal to form a new government on Wednesday just before a deadline expired, but his coalition will rule by the slimmest of majorities in Israel's turbulent parliament.

"Israel now has a government," Naftali Bennett, the head of the far-right Jewish Home party announced at parliament after hours of haggling with Netanyahu's Likud deputies over cabinet positions, which were not immediately announced.

Netanyahu had struggled to put together a coalition for nearly two months after winning an easy election victory, after a former ally abandoned him this week.

Barely two hours before a midnight (2100 GMT) deadline mandated by law, Netanyahu's right-wing Likud sealed an agreement with ultranationalist Jewish Home, which advocates annexation of parts of occupied territory Palestinians seek for a state.

Netanyahu dispatched a formal notice to President Reuven Rivlin, telling him "I am honored to notify you I have succeeded in forming a government, which I would like to present to parliament as soon as possible."

With Jewish Home, the ultra-Orthodox United Torah Judaism and Shas parties and Kulanu, a centrist faction, the Likud-led government will control 61 of parliament's 120 seats.