Israeli Prime Minister Benjamin Netanyahu struck a surprise deal with the opposition Kadima party on Tuesday, agreeing to form a national unity government and dropping plans for a snap election, AFP reports.
Under terms of the agreement, Shaul Mofaz, who took over leadership of the centre-right Kadima party only six weeks ago, would become Deputy Prime Minister as well as a minister without portfolio in the new cabinet, officials said.
The two men negotiated the 11th-hour deal as the Knesset, Israel's parliament, was voting on a motion to end its current session to clear the way for an early election that Netanyahu himself had said he wanted.
The agreement to form what will be Israel's seventh national unity government, will be put to a vote in the Knesset later on Tuesday, Speaker Reuvel Rivlin speculated in an interview on army radio.
It means that Netanyahu will head Israel's largest-ever coalition and be able to count on a majority of 94 votes in the 120-seat assembly.
The two parties also pledged to change the system of government by the end of 2012, and Kadima MPs would take up key positions in Knesset committees covering foreign affairs and defence, and economic affairs.
The agreement also involves a commitment to renew the diplomatic process with the Palestinians, and a deal over the next state budget.
During the night, Netanyahu called President Shimon Peres, who is on an official visit to Canada, a statement from the prime minister's office said.
