Yesh Atid concedes Interior Ministry in return for Education Ministry; Bennett to be Economy and Trade Minister.

Parties agree on 21-portfolio government; Kadima's inclusion uncertain; ''Settlement Ministry'' may be created for Ariel.

Yesh Atid, Bayit Yehudi and Kadima offer to support PM for full, four-year term if they receive Foreign and Finance ministries.

Bayit Yehudi won't sign agreement including mention of two-state solution; Yesh Atid shows flexibility on number of ministries, demands more liberal policies on civil marriages for same sex couples, public transport on Sabbath.

Yesh Atid says Likud insists on 28 ministers, while Erdan says number of portfolios will be ''significantly decreased.''

Yesh Atid says Likud insists on 28 ministers, while Erdan says number of portfolios will be ''significantly decreased.''

Renowned peace activist laid to rest in his Tekoa home; 'left and right, everyone loved you and you loved everyone,' says his son.

Hamas announces that the Palestinian Authority has arrested 66 of its supporters in the West Bank including 32 former prisoners held by Israel; arrests come as efforts to achieve Hamas-Fatah appear to have failed.

The leader of Bayit Yehudi (Jewish Home) Naftali Bennett on Monday expressed optimism about the formation of the next coalition government as Prime Minister Benjamin Netanyahu began working on a coalition without haredi (ultra-orthodox) parties.

Shas: Bennett-Lapid bond hating haredim too strong for PM to break; rabbis support Bayit Yehudi-Yesh Atid alliance.