Prime Minister Benjamin Netanyahu clinched a deal to form a new government on Wednesday, just before a deadline was to expire, but the coalition will rule by only the slimmest of majorities in Israel's turbulent parliament.
"Israel now has a government," Naftali Bennett, the head of the far-right Jewish Home party announced at parliament after hours of haggling with Netanyahu's Likud deputies over cabinet positions, which were not immediately announced.
Nearly two months after a convincing election victory, Netanyahu has struggled to put together a coalition after former ally Avigdor Lieberman abandoned him this week.
With barely two hours to spare as a midnight deadline mandated by law approached, the source said Netanyahu's right-wing Likud sealed an agreement with the ultranationalist Bayit Yehudi.