Avigdor Lieberman's Yisrael Beteinu won seven seats
Mr Netanyahu has begun talking to potential allies, promising a “right-wing government that will look after all Israeli citizens”.
The election has left the opposition even more fractured than before with the break-up between Yesh Atid, led by Yair Lapid, and Defence Minister Benny Gantz’s Blue and White, giving it little prospect of assembling a governing coalition.
If the distribution of votes remains the same, Yes Atid would take 17 seats and Blue and White eight.
The Joint Arab List is slated so far to receive only six seats, with Ra’am, the Islamic Movement, on five.
Labour has seven and the left-wing Meretz five.
The remaining 12 per cent of votes, which may not be tallied until Thursday afternoon at the earliest and probably Friday, could still swing the election. If Ra’am failed to pass the electoral threshold in the end, other parties would pick up votes, possibly altering the balance.
Even if Mr Netaynahu can muster a tiny majority, he may face a battery of demands from some of his coalition partners to keep them sweet.
In the continuing deadlock, the prospect of another election this summer could be on the cards.