Netanyahu Hails 'Great Victory' But Result Close

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Benjamin Netanyahu has claimed a "great victory" in Israel's election - but exit polls put his party neck-and-neck with the centre-left Zionist Union.

Mr Netanyahu is fighting to remain as prime minister after his centre-right Likud won 27 seats, the same number as its main rival in the 120-member parliament, according to two polls.

A third put Likud on 28 and Isaac Herzog's Zionist Union on 27, with the figures coming out moments after voting ended.

Likud appeared to have gathered some late momentum as it had trailed by up to four seats in the final polls published last week.

The two leaders will now each try to join up with other parties in order to form the next government.

But Mr Netanyahu, 65, could find it easier to create a coalition, as he has backing from an array of smaller right-wing and religious parties.

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Gallery: Israel Goes To The Polls In Tight Election

Israel's Prime Minister Benjamin Netanyahu casts his vote in Jerusalem

An Israeli soldier choosing a ballot from behind a voting booth near Ofakim

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Isaac Herzog, co-leader of centre-left Zionist Union party, poses for a photograph at his party's headquarters in Tel Aviv

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Mr Herzog places a note in the Western Wall, the holiest prayer site for Jews in Jerusalem

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A supporter of the ultra-Orthodox Shas party holds a campaign poster in Bnei Brak

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He wrote on Twitter: "Against all odds: a great victory for Likud, a great victory for the national camp led by Likud, a great victory for the people of Israel."

Mr Netanyahu also said he had invited other right-wing politicians to join him in a coalition "without delay", adding: "Reality does not take a break."

But Mr Herzog, 54, insisted he was still in the race to form the next government. "Everything is open," he told activists in Tel Aviv.

"I intend to make every effort to build a real social government in Israel."

The polls also showed the centrist newcomer Moshe Kahlon with enough seats to determine who will be the next prime minister.

Mr Kahlon, who broke away from Likud, has not said whether he favours Mr Netanyahu or Mr Herzog.

The main Arab parties took third place with 13 seats after joining forces to challenge the premier, according to exit polls.

Final results were not expected until Wednesday morning and it typically takes weeks of negotiations for a governing coalition to be formed.

Sky's Middle East reporter Tom Rayner said: "In terms of the seats for both [main] parties, this is more than people were expecting.

"And it's a lot closer than people were expecting."

More than 5.8 million people were eligible to vote in 10,372 polling stations nationwide, and they cast ballots for a party list, rather than individual candidates.

Mr Herzog has repeatedly called for the creation of a Palestinian state alongside Israel.

Mr Netanyahu was seeking a fourth term in office and cast the threat to his reign as a foreign-orchestrated bid to install a leader who might agree to Palestinian statehood or nuclear diplomacy with Iran.

In a last-minute appeal to his hardline base, the 65-year-old reiterated that a Palestinian state would not be created on his watch.

He told a news website that turning over captured territory to the Palestinians would clear the way for Islamic extremists to take control and attack Israel.

"Whoever ignores that is burying his head in the sand," he said.

"The left is doing that, burying its head in the sand time after time."

His vow not to allow a Palestinian state goes back on a long-standing promise to the US, something that could strain troubled ties with Washington.

Mr Netanyahu brought the election on himself, calling the snap vote after firing centrist ministers from his fractious coalition just two years into its term.

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