Netanyahu clinches deal to form new Israeli government

Jewish nation state

Bennett is a strong supporter of a bill, promoted by Netanyahu, that would anchor in law the status of Israel as the nation-state of the Jewish people. Critics, among them Rivlin, have said it runs counter to the founding fathers' vision of equality for Arab citizens.

Other proposed legislation likely to be pursued would seek to limit the power of the Supreme Court to overturn laws passed by parliament and tighten controls over foreign donations to left-wing organisations.

Shortly after the March 17 election, Netanyahu appeared to be coasting toward a right-leaning government with control of 67 parliamentary seats and voiced confidence he would be able to form one quickly. Rivlin initially gave him 28 days to do so.

But on Monday, Foreign Minister Avigdor Lieberman, whose once-strong relationship with the Israeli leader turned sour long ago, took his far-right Yisrael Beitenu party out of the coalition talks.

That left Netanyahu with only 53 seats, making Jewish Home's backing essential to ensuring the unexpected election win would result in a fourth term for the 65-year-old leader.

Had Netanyahu not met Wednesday's deadline, the president would have been obligated by law to appoint another legislator to try to form a government.

A coalition pact between Netanyahu and his main election rival, Isaac Herzog, leader of the centre-left Zionist Union that won 24 seats, would have ensured a broader coalition.

But Herzog, who largely echoes Netanyahu in criticism of the framework deal world powers reached with Iran last month to restrict its nuclear program, did not stray from his post-election pledge to take to the opposition benches.