Israeli prime minister Benjamin Netanyahu has reached an agreement with the Kadima opposition party for a unity government, cancelling an early election, it was reported today.

Israeli prime minister-designate Tzipi Livni today abandoned her efforts to form a new coalition government and said she would recommend early parliamentary elections.

AFTER three weeks of negotiations, Israel’s premier yesterday put together a coalition government that backs his plan to pull out of parts of the West Bank and draw the country’s final borders by 2010.

Israel has modified the route of its West Bank separation barrier, moving forward with Interim Prime Minister Ehud Olmert’s plan to quickly define the country’s final borders as his Kadima Party secured a parliamentary majority.