Israeli coalition negotiations remained deadlocked Monday as Prime Minister Benjamin Netanyahu and a right-wing party leader engaged in a standoff that could provoke new elections only months after April 9 polls.
Netanyahu has until Wednesday night to form a coalition government, but ex-defence minister Avigdor Lieberman has prevented a deal by refusing to budge from a key demand.
Holding elections so close to one another would be unprecedented in Israel, and there have been concerns over the cost and prolonged political paralysis that would result.
Israel's parliament could take the first step toward dissolving itself as early as later Monday. Further votes would be needed to move towards elections.
On Monday, Netanyahu's Likud party called on Lieberman and his Yisrael Beitenu party to compromise and allow a coalition to be formed.
Lieberman said he had already made concessions and was not prepared to go further, adding he was ready for new elections if needed.
His party controls five seats in parliament and Netanyahu needs his support for the coalition he is seeking.
"It's a matter of principle," Lieberman told journalists, calling Netanyahu's failure to form a government a "huge, unprecedented failure."