A compromise has been reached towards a final coalition deal in Israel after the newly formed centrist Yesh Atid party reportedly agreed to give up demands for the interior ministry, local media have reported.
The new coalition government, to be headed by Binyamin Netanyahu, the leader of conservative Likud party, is likely to be sworn in after Wednesday's deal with the Yesh Atid leader Yair Lapid.
However, it was not immediately clear when the new government would be sworn in.
Netanyahu, the current prime minister of Israel, has been locked in intensive coalition talks ahead of a March 16 deadline to announce the shape of his new government, which must have a working majority of at least 61 within the 120-seat parliament.
The reports of the deal comes just days before an official visit by Barack Obama, the US president.
According to Israeli media, Netanyahu agreed that the Yesh Atid party, which did well in the elections, could take the education portfolio, while the interior ministry would go to his Likud party.
Only one party has agreed to join the coalition so far.
Al Jazeera's Nicole Johnston, reporting from Jerusalem, said an interesting aspect of the government formation is that the ultra-orthodox parties were left out of the coalition government.
"It's only the second time in 30 years that they have been left out. And this would change the face of Israeli politics," Johnston said.