Breaking News: Coalition Government Agreed in Israel

After an extended and heated debate, the Labor Party has agreed to join a coalition government headed by the Likud Party and Benjamin Netanyahu (pictured) in Israel.

With Labor's support, Prime Minister-to-be Netanyahu would have 66 seats in the 120-seat Knesset: 27 from Likud, 13 from Labor, 15 from Israeli Beitenu, led by Avigdor Lieberman, and 11 from orthodox Jewish party Shas.

Earlier in the day Labor leader Ehud Barak had gambled on a personal agreement with Netanyahu before putting the issue to his party. Barak is likely to remain as Defense Minister in the new government.

The Latest from Israel-Palestine (16 March): Israel Coalition, Palestinian Reconciliation

Late Afternoon Update (5 p.m. GMT): Palestinian sources say that agreement has been reached in Cairo amongst factions on the holding of Presidential and legislative elections by January 2010.

In Israel, Benjamin Netanyahu's Likud Party and the Israel-Beitenu Party of Avigdor Lieberman have signed a coalition agreement. Lieberman would be the Foreign Minister and Israel-Beitenu would also have the ministerial portfolios of internal security, infrastructure, tourism, and integration of new immigrants.

Morning Update (10 a.m. GMT): Interesting news out of Tel Aviv. Israeli Prime Minister Ehud Olmert (pictured) has postponed for 24 hours Monday's Cabinet meeting, which was to discuss the possibility of a prisoner exchange with Hamas for kidnapped soldier Gilad Shalit.

"It should be emphasized that as of yet, there is no sign that indicates a result in any particular direction in the negotiations," the Prime Minister's Office said.

It appears that the two Israeli negotiators in Cairo, Yuval Diskin, the head of domestic intelligence service Shin Bet, and Olmert's envoy Ofer Dekel have stayed an extra day. It is also being reported that Hamas military commander Ahmad Jabari has been in Egypt since Thursday to head Hamas' delegation on the prisoner issue.

Olmert's office is still being cautious, saying, "It should be emphasized that as of yet, there is no sign that indicates a result in any particular direction in the negotiations."