Likud leader Benjamin Netanyahu has gained the support of Avigdor Lieberman in his bid to become Israel's next prime minister.
The backing from Mr Lieberman's Yisrael Beitenu party means Mr Netanyahu, a former premier popularly known as Bibi, can count on the support of 65 of the 120 members of parliament.
But the ultra-nationalist Beitenu leader wants to see a wider government.
He told President Shimon Peres 'we need a government with the three largest parties, Likud, Kadima and Yisrael Beitenu'.
The president was meeting parliamentary factions before deciding who will be tasked with forming a governing coalition.
But the governing Kadima's response was lukewarm at best.
'Kadima must serve the people on the opposition benches,' said Finance Minister Roni Bar-on.
Foreign Minister and party leader Tzipi Livni, for her part, insisted 'Kadima will not support a paralysed government. Kadima and I will continue on the track we have taken to push forward the peace process and fight against terrorism.'
Mr Peres met Likud and Kadima representatives yesterday and was holding talks with the other ten factions today.
