The Central Election Committee (CEC) said that Blue and White party seemed to be taking a lead over Likud after 91 per cent votes were counted.
President Herzog said that he will assign the task to form a new government to Netanyahu, 73, following consultations with leaders of all the political parties that have been elected to Parliament.
Israeli foreign minister Avigdor Lieberman today snapped a 20-month political alliance with Prime Minister Benjamin Natanyahu, the first fallout of a simmering discontent over the fractious ruling coalition's response to frequent attacks by Palestinian Hamas militants.