Rumours are circulating in the Israeli media that Kadima plans to leave the Israeli government coalition imminently.
The centrist party joined the Likud-led coalition in May, after former Defence Minister Shaul Mofaz won the leadership over Tzipi Livni.
But cracks have emerged in the agreement, particularly over Prime Minister Netanyahu's handling of legislative changes to the universal draft.
The issue of whether it is mandatory for Charedim to serve in the Israeli army is a polarising one in Israel, but on Monday Mr Netanyahu announced that negotiations on the reform had collapsed.
Last week Mr Mofaz pledged that "without a history-making offer [on universal conscription], we won't stay in the government".
If Mr Mofaz does take Kadima out of the coalition, it is not clear that all members of his party will follow. According to Israel Hayom, some Kadima members are planning to forge a new party in order to remain in government.