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Jerusalem: Israel's Kadima and Labour parties are close to a deal on a coalition government led by Tzipi Livni, a move that sets her on course to form a new centrist administration, Army Radio has said.
Foreign Minister Livni still needs to persuade other parties to join her to build a workable parliamentary majority. She was named by President Shimon Peres to take over from Ehud Olmert, who quit over a corruption inquiry.
Olmert continues to serve as caretaker prime minister, but if Livni cannot form a government by November, an early parliamentary election is likely.
"The formation of as broad a government as possible at this time is the best thing for Israel and I know that the public will not forgive those who send Israel to elections at this time," Livni told Kadima members on Sunday night.
In order to present her governing coalition to the 120-seat parliament and gain a vote of confidence, Livni would have to enlist the support of 61 members of the Knesset. Olmert's government had the support of 67 lawmakers. Analysts predict Livni's government would have a similar political orientation.
A Livni aide said the deal with Labour could be signed soon.
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