Likud spokesman Yonatan Orich denied media reports that Prime Minister Netanyahu had been in contact with the Arab political parties.
"There was no coordination with the Arab parties -such things never occurred," Orich said.
Earlier, Galai Tzahal (Army Radio) reported that it had obtained a secret agreement whereby the Arab parties would give Netanyahu a safety net in the Knesset in return for Netanyahu securing government recognition of two illegal Arab villages.
The Likud party has denied the rumors of a deal with the Arab parties.
MK Mickey Zohar (Likud) responded: "I hear all the rumors about cooperation with Arab parties, and this is nothing more than a funny joke. The Arab lists have always tried to advance the interests of their sector, but the Likud never agreed to form a government with their support and even vehemently rejected many of their insinuations."