The Israeli Prime Minister, Ariel Sharon, has invited the opposition Labour Party to begin coalition talks.
The invitation follows last night's vote by Mr Sharon's right-wing Likud Party to authorise negotiations with the Labour Party, led by Shimon Peres.
Likud's Central Committee voted by over 60% to support the move.
The decision averts the need for early elections and paves the way for a broad coalition that would allow Mr Sharon to push through his plan to withdraw from the Gaza Strip and parts of the West Bank.
Senior Likud MP Yuval Shteinitz said there was no other option at the present time, but doubted the long-term viability of the alliance.
The proposed coalition would include two ultra-Orthodox parties.
