Israeli Foreign Minister Tzipi Livni has been officially declared the winner of a party leadership election to choose a successor to Prime Minister Ehud Olmert.
Judge Dan Arbel, who oversaw Wednesday's ballot, informed Ms Livni's campaign managers that she had won the vote to lead the Kadima party.
In her victory speech, Ms Livni said efforts to form a new coalition government would begin immediately.
Despite exit polls indicating an emphatic victory, the final result gave Ms Livni a narrow margin over her rival and cabinet colleague, Shaul Mofaz.
Mr Olmert, who faces corruption charges, is expected to remain in office in a caretaker capacity until Ms Livni can put her own coalition government in place.
Ms Livni, a 50-year-old lawyer, made no direct mention of the peace negotiations she has been heading with the Palestinians for the past year.
Chief Palestinian negotiator Ahmed Qurie welcomed the choice of Livni, saying he believed she would ‘pursue peace moves with us.’
Facing what are likely to be complicated talks with potential political partners, Ms Livni said: ‘Tomorrow, I will begin meeting with representatives of the factions in order to form quickly a coalition that can deal with all of these challenges that lie ahead.’
Meanwhile, Palestinian Islamist movement Hamas said that if Ms Livni becomes Israeli prime minister it would mean the pursuit of a policy of ‘aggression’ against Palestinians.
‘Livni's accession to power would signify the same policy of repression and aggression against the Palestinian people carried out by previous Zionist leaders,’ Hamas spokesman Fawzi Barhum said in a statement.
‘We must remain committed to resistance as a strategy to defend our rights,’ he added.
Hamas, regarded as a terrorist group by Israel, has ruled the Gaza Strip since June last year when it routed forces loyal to Palestinian president Mahmud Abbas after days of bloody street battles.