Far-right party leader Naftali Bennett threw his crucial support on Sunday behind a "unity government" in Israel to unseat Prime Minister Benjamin Netanyahu, in what would be the end of a political era.
Mr Bennett's decision, which he announced in a televised address, could enable opposition chief Yair Lapid to put together a coalition of right-wing, centrist and leftist parties and hand Mr Netanyahu his first election defeat since 1999.
Mr Lapid, head of the centrist Yesh Atid party that finished second to Mr Netanyahu's right-wing Likud in an inconclusive 23 March national ballot, faces a Wednesday deadline from Israel's president to announce a new government.
Mr Lapid's chances of success have rested largely with Mr Bennett, a former defence chief and a high-tech millionaire whose Yamina party's six seats in the 120-member parliament are enough to give him the status of kingmaker.
Under a prospective power-sharing deal, Mr Bennett would replace Mr Netanyahu, the 71-year-old head of the Likud Party, as prime minister and later give way to centrist Mr Lapid in a rotation agreement.
"I am announcing today that I intend to work with all my might towards establishing a unity government with Yesh Atid chairman Yair Lapid," Mr Bennett said in his speech. "It's either a fifth election or a unity government."
Responding on television to Mr Bennett's announcement, Mr Netanyahu accused him of perpetrating "the fraud of the century", citing past public promises Mr Bennett made not to join up with Mr Lapid. He said a right-wing government was still a possibility.
Israel has held four elections since April 2019 that ended with no clear winner and left Mr Netanyahu and his rivals short of a parliamentary majority, with the veteran leader remaining in office as head of a caretaker government.
The new prospective coalition's diverse members would have little in common apart from the desire to end the 12-year run of Mr Netanyahu, Israel's longest-serving leader, now on trial over corruption charges that he denies.
An anti-Netanyahu alliance would be fragile and require outside backing by Arab members of parliament who oppose much of Mr Bennett's agenda, which includes more settlement building in the occupied West Bank and its partial annexation.
It would be expected to focus on the economic recovery from the COVID-19 pandemic, while setting aside issues on which members disagree, such as the role of religion in society and Palestinian aspirations for statehood.
Mr Netanyahu said such a coalition was a danger to Israel's security and future.
"What will it do for Israel's deterrence? How will we look in the eyes of our enemies," he said. "What will they do in Iran and in Gaza? What will they say in the halls of government in Washington?"A Bennett-Lapid agreement had already been reported to be close when violence broke out between Israel and Gaza militants on 10 May and Mr Bennett suspended the discussions. The fighting ended with a ceasefire after 11 days.
Yair Lapid (left) speaks to Naftali Bennett (right) during a reception marking the opening of the 19th Knesset (Israeli parliament) on 5 February 2013 in Israel Source: Uriel Sinai/Getty Images
A Palestine Liberation Organisation official said after Mr Bennett's speech that the prospective government would be "extreme rightist" and no different than administrations headed by Mr Netanyahu.
Counter-offer
Trying to scupper an opposition deal, Mr Netanyahu made a three-way counter-offer on Sunday to stand aside in favour of another right-wing politician, Gideon Saar.
Under that blueprint, Mr Saar would serve as prime minister for 15 months, Mr Netanyahu would return for two years, and Mr Bennett would then take over for the rest of the government's term.
However, Mr Saar, a former Likud cabinet minister, swiftly rejected the offer.
"Our position and commitment was and remains: to change the Netanyahu regime," Mr Saar posted on Twitter.
Mr Netanyahu's rivals have cited his corruption case as the main reason why Israel needs a new leader, arguing that he might use a new term to legislate immunity to shield himself.
If Mr Lapid, 57, fails to announce a government by Wednesday, at the end of a 28-day period to build a coalition, a new election is likely.