Benyamin Netanyahu, the Israeli prime minister-designate, is expected to present his new cabinet to the parliament on Tuesday, an official with his Likud party has told the AFP news agency.

"Mr Netanyahu will present Tuesday night his cabinet for a Knesset [parliament] vote," the official was quoted as saying.

Netanyahu will preside over a 69-seat coalition in the 120-member parliament that leans heavily to the right.

The coalition includes 27 members from his Likud party, 15 members from the ultra-nationalist Yisrael Beitenu, 11 from the orthodox Shas, 13 from the centre-left Labor, and three members of the Jewish Home settler party.

The right-wing shift of the new government has sparked concerns over the future of the stalled peace process with Palestinians.

Egypt has already voiced its concern over Netanyahu's likely cabinet.

Lack of optimism

Ahmed Abul Gheit, the Egyptian foreign minister, said on Saturday: "The formation they are speaking of for a new government does not inspire optimism ... we have not heard until now any encouraging commitments at all from people expected to join the upcoming government."

Abul Gheit called on the new government to "clearly declare ... its intention and capability to stop all settlement building and to dismantle all settlements in the Palestinian people's land".

Ehud Olmert, the outgoing Israeli prime minister, had proposed dismantling some settlements in the West Bank while retaining the main settlement blocs that house the majority of settlers.

However, Israeli media reported last week that Netanyahu has decided to expand settlements in an especially contentious part of the West Bank near East Jerusalem.