Palestinian leader Mahmoud Abbas has pledged to work with any Israeli administration that seeks the two-state solution.
Speaking as Israeli politicians searched for ways to build the next coalition government, Mr Abbas's spokesman said that for the Palestinians the focus was not who would form the government, but its views regarding the peace process.
"What interests us in the next Israeli government, is for it to abide by the two-state solution, stop settlements and recognise the UN General Assembly November 29 resolution that talks about a Palestinian state on the 1967 borders with Jerusalem as its capital," said Nabil Abu Rudeineh.
"We are ready to work with any government in Israel that accepts these terms of reference that are based on international resolutions."
Although the make-up of the coalition is at yet uncertain, the surprise success of Yair Lapid's Yesh Atid party, and the relatively poor showing of the hawkish Jewish Home party may revive hope for the viability of peace talks in the region.
Speaking after the results came through, Mr Lapid – who has previously stated that he would not join a government opposed to diplomatic negotiations – acknowledged that Israel was "facing a world that is liable to ostracise us because of the deadlock in the peace process".
The absence of a stark rightward swing was hailed by the Anti-Defamation League in the United States, which praised the electorate for having rejected "extremes in areas of religion, and extremes in domestic and foreign policy.
"The high turnout and the unexpected results show that the Israeli democratic process remains robust and unpredictable," said ADL officials.