An accord on a new Israeli coalition government is likely to be finalized on Friday, few days before an expected visit by Obama next week.

An accord on a new Israeli coalition government is likely to be finalized on Friday as Prime Minister Benjamin Netanyahu and his centre-right partners have overcome differences with rightwing factions.

Reports said that Yair Lapidsrael, head of Yesh Atid, and Naftali Bennett of Jewish Homeland renounced their demands for the post of deputy prime minister, a key obstacle to finalizing a coalition agreement.

Israeli public radio said the long-awaited agreement was to be signed before the Saturday, or by Friday afternoon.

The leaders negotiating a coalition have until after Saturday evening to present their new coalition agreement to President Shimon Peres.
The agreement was expected on Thursday. However it was hindered by Lapidsrael and Bennett’s demands.

Media reports said that under the new pact, the key ministries of finance and education are to be headed Yesh Atid, which won 19 out of 120 seats at the January 22 election.

Jewish Homeland would head the portfolios of trade and industry, and housing which oversees the construction of Jewish settlements in the occupied Palestinian territories.