Jewish Home chairman Naftali Bennett has mediated a compromise between Yesh Atid leader Yair Lapid and Prime Minister Binyamin Netanyahu that will enable a new coalition government to be formed, Israeli media reported Wednesday evening.

Lapid’s party  apparently hold the position of Minister of Education, in place of Gideon Sa’ar, but Lapid will give up his demand for his party to take over the Interior Ministry, according to the compromise.

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Only a few hours before, Lapid and Netanyahu were threatening each other with drastic moves. Lapid said he was ready to sit in the Opposition rater than give up his demands, while the Prime Minister was reported to be ready to ditch Lapid and Bennett and form a government with the Haredi parties and Labor.

Bennett was unhappy with Lapid’s refusal to compromise, and party sources said he was ready to scrap what until now been an iron-tight alliance with Yesh Atid, leaving open the possibility that his party would join the Haredim instead of Labor.

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Tzvi Ben Gedalyahu is a graduate in journalism and economics from The George Washington University. He has worked as a cub reporter in rural Virginia and as senior copy editor for major Canadian metropolitan dailies. Tzvi wrote for Arutz Sheva for several years before joining the Jewish Press.