Sources close to Education Minister Naftali Bennett have said that the Israeli government is to hold early elections.

The decision came following the resignation on Wednesday of Defence Minister Avigdor Lieberman over the Gaza ceasefire, pushing Prime Minister Benjamin Netanyahu’s fragile coalition to the brink of collapse.

Mr Netanyahu could have avoided the early election by accepting Mr Bennett’s offer of support in the Knesset in return for Mr Lieberman’s job, but the prime minister appears to have turned down the Education Minister’s offer in a meeting today.

Head of Kulanu Party and Finance Minister Moshe Kahlon told Mr Netanyahu on Thursday that the right thing for the citizens and the economy of Israel was to call elections as soon as possible.

Interior Minister Arye Dery also called for elections "as soon as possible, for the sake of the country."