Likud and United Torah Judaism signed a coalition agreement on Tuesday night ahead of Thursday's expected swearing in of Israel's new government led by Prime Minister-designate Benjamin Netanyahu.
A dispute between the two factions of the political alliance representing the Ashkenazi Haredi community threatened to derail the negotiations.
Degel HaTorah chairman MK Moshe Gafni had reportedly refused to sign the agreement over "kosher" cellphone reform. However, Gafni reached an understanding with Agudat Yisrael chairman Yitzhak Goldknopf on this issue.
Under the agreement, Goldknpof will reportedly receive the Construction and Housing portfolio, while Gafni will serve as chairman of the Finance Committee.
Degel HaTorah MK Uri Maklev will serve as deputy Development and Haredi Transportation minister, Meir Porush from Agudat Yisrael will serve as Jerusalem and Heritage minister, Ya'akov Asher of Degel HaTorah will be chairman of the Interior Committee, Agudat Yisrael's Yisrael Eichler will assume the role of chairman of the Labor and Welfare Committee, Degel HaTorah's Yitzhak Pindrus will chair the Public Inquiries Committee and Ya'akov Tessler of Agudat Yisrael will serve as deputy minister.
Netanyahu, the leader of the Likud party with the greatest representation in the next Knesset (Israel's parliament) with 32 seats, is poised to return to the position of prime minister with his right-wing bloc securing a majority 64 seats in November's elections.
Since receiving the mandate to form a government from President Isaac Herzog, Netanyahu has been working on finalizing deals with his coalition partners. He has at times struggled to get restive players in the coalition to get in line, but the partners appear to be getting on board at the last minute.
A hearing and confidence vote on the new government is scheduled for Thursday morning.