According to earlier reports, religious Sephardic party Shas is also on its way into the government and will finalize a deal with Kadima soon. Kadima officials confirmed that an agreement with Shas is expected to be signed as early as Thursday.
With Labor, Shas, and the Pensioners party Kadima is assured of having at least 67 Knesset members in the new coalition.
Meanwhile, it appears the Labor and Shas have reached an agreement that would see Shas get a deputy minister post at the Education Ministry. The deputy minister will be subordinated to designated Education Minister Yuli Tamir from Labor and be responsible for the ultra-Orthodox education system. According to the deal, Labor will also get a deputy minister post, at the Defense Ministry.
However, Kadima officials later said they would reject such deal.
Shas officials said Thursday morning the religious party and Kadima reached a breakthrough in their coalition talks and are expected to sign a deal soon.
It appears Shas will be receiving an extended Trade, Industry and Labor portfolio, the Communication Ministry, and a minister at the Prime Minister's Office to be in charge of religious services. The minister will receive powers related to the Ministry of Religion, which was dismantled under the previous government.
On another front, coalition talks between Kadima and United Torah Judaism seems to have hit a snag in light of UTJ's insistence that child allowances be boosted. At this time it also appears that Avigdor Lieberman's Israel Our Home will remain out of the government after failing to reach agreement on outstanding issues, most notably Kadima's diplomatic plan.
Attila Somfalvi contributed to the report