Article published on the 2009-03-23 Latest update 2009-03-23 12:04 TU
Israel's President Shimon Peres (L) and Israeli Prime Minister-designate Benjamin Netanyahu
(Photo: Reuters)
The agreement with Shas means that the party would receive four portfolios, including Housing, Religion and Interior. Shas lawmakers would also occupy the position of Deputy Prime Minister and a minister-without-portfolio position in the Prime Minister's Office.
Likud won 27 seats in the February election and with the 15 seats of Yisrael Beitenu and now 11 from Shas, the coalition now holds 53 seats, still short of a ruling majority in the Knesset.
Netanyahu has until 3 April to form a government and on Sunday Labour leader Ehud Barak instructed a negotiating team to draw up a coalition proposal that will be presented to the party on Tuesday.
Barak had initially refused to enter a coalition with Netanyahu but has since reversed his position. Labour is not unanimous in its support of a potential alliance with Likud.
Labour had its worst-ever showing in the election, but its 13 seats would bring the coalition to 66 and give Netanyahu the majority needed.