Speaking to Kadima faction members, Livni said: "Decisions need to be made by Sunday, and then we will know whether we'll have a government or elections."
Before the faction session, Livni met with Transportation Minister Shaul Mofaz, who she defeated in the recent primary elections, for the second time in the past 24 hours.
"My tendency in the wake of the primaries was to go to general elections, yet I thought it would be appropriate to form a stable government," Livni said at the start of Thursday's faction session.
"We have an agreement with Labor and we presented decent proposals to the other parties…the proposals submitted are socially minded and enable potential partners to present achievements to their voters."
Livni made it clear that she does not intend to spend much time negotiating, saying that "the clarifications demanded by the partners are legitimate, but I won't drag it out anymore…the holidays are over, the time for decisions has come, and there is no need for more time."
'We will win elections'The foreign minister said that she is willing to pay a price to form a government, but stressed that she is not willing to pay any price.
"The partners know this. I informed the president that I will be coming to him on Sunday and we'll decided between elections and a government – if we go to elections, we'll win," she said.
The pressure on Livni has increased in recent hours, after the Pensioners' Party's negotiation team canceled a planned meeting with the Kadima team. The party's chairman, Rafi Eitan, said that a draft submitted by Kadima earlier "proves that the pensioners are not at the top of the designated government's agenda."