Israel's opposition Labour party has clinched a deal with Ariel Sharon's Likud party to join his coalition, a move seen as boding well for Mr Sharon's Gaza pullout plan.
Representatives from both parties are expected to sign the deal tomorrow, after a week of negotiations.
Five trapped as tunnel in Gaza collapses
Efforts are continuing in the Gaza Strip to rescue up to five people who are believed to have been trapped when a tunnel used for smuggling collapsed on the border with Egypt.
Israeli forces around the border town of Rafah gave clearance to Palestinian ambulances and rescue crews to go to the scene.
Many tunnels have been dug beneath the border to move weapons, but others are used to smuggle contraband, such as cigarettes.
It is not known whether the tunnel that caved in had been dug by traders or militants.
Five killed in Gaza Strip
Overnight and this morning, five Palestinians were killed and up to 15 others were wounded when Israeli soldiers raided the southern Gaza Strip.
A number of others in the Khan Yunis refugee camp were made homeless when their houses were demolished.
Four of the injured were said to have been hurt when a missile was fired from a helicopter gunship.
The Israeli army said the missile strike was aimed at destroying launching points for rocket attacks on the nearby Jewish settlement of Gush Katif.
The Israelis described the operation as ongoing.
The raid came after another missile attack on a workshop in Rafah which Israeli forces said was a weapons store for the militant group, Hamas.
