The coalition negotiations between Likud and the movement led by Benny Gantz have become bogged down in a series of disagreements.
Despite the obstacles, Benjamin Netanyahu still hopes to be able to present his new government to the Knesset next week before Pesach.
While Mr Netanyahu and Mr Gantz had agreed most of the details of the coalition agreement between them on Saturday night, a number of key issues remain unresolved, chief among these the prime minister’s demand that he be allowed to continue working towards annexing parts of the West Bank to Israel under the Trump administration’s “deal of the century.”
While the initial agreement was that no major moves would be taken in the next six months while Israel confronts the pandemic, the more right-wing elements in Mr Netanyahu’s bloc of supporters are insisting that concrete steps be taken earlier than that.
They fear US President Donald Trump could lose the election in November and “a historic opportunity will be lost.”
But Mr Gantz insists that any movement towards annexation should take place within wider international and regional consensus, which is unlikely to be forthcoming any time soon.
Another disagreement is over the identity of the new justice minister. Mr Netanyahu agreed that it would be a member of the Blue & White opposition list, a demand made by Mr Gantz to help ensure that the prime minister does not avoid going on trial for his indictments for bribery and fraud.
However, Mr Netanyahu wants to retain the right to veto appointments to senior legal posts including the state prosecutor and attorney general.
Blue & White is also interested in the health ministry, currently held by Yaakov Litzman of United Torah Judaism, who this morning tested positive for coronavirus. For now, he refuses to move to another post.
Despite the disagreements, the expectation within the political establishment is that they will be solved within days as Mr Gantz has already made the crucial decision to join the government in return for control of half the cabinet posts and a commitment that he will replace Mr Netanyahu as prime minister in a year and a half.
Blue & White formally split on Sunday, with half its MKs, opposed to entering the coalition, joining the list’s former co-leaders Yair Lapid and Moshe Yaalon in opposition.
Labour is also currently torn between the desire of its leader Amir Peretz to join the coalition too, and many of its members who are opposed to such a move.
Mr Netanyahu has promised Labour the business and social affairs ministries if it enters government.
Mr Gantz, who was elected Knesset speaker on Thursday, is holding the post temporarily until the coalition deal is signed and he becomes a senior minister and deputy prime minister.
However his aides warned this week that if Mr Netanyahu goes back from the assurances he already gave him, he could still use the speaker’s powers to allow legislation preventing an indicted prime minister from forming a government to go ahead.