Israeli President Shimon Peres congratulated Prime Minister Binyamin Netanyahu on forming a government and advised him that work needs to start immediatly.
"There are outstanding issues, but full opportunities in the issues of security, social needs and the prospects of peace."
Peres added that with regard to the peace process, "the country needs it and the people need it - the time has come".
The new government is expected to be sworn in on Monday.