Yoaz Hendel and Zvi Hauser
Yoaz Hendel and Zvi Hauserצילום: Noam Revkin Fenton/Flash90

Israeli Prime Minister Binyamin Netanyahu on Sunday evening told members of the Knesset's Derech Eretz party that he would instruct Likud MKs to support the bill to delay the deadline for passing the State budget, Israel Hayom reported.

A short time later, Defense Minister Benny Gantz (Blue and White) announced that his party as well would support the initiative.

According to the agreement between Netanyahu and Gantz, if a budget is not approved by August 24, the Knesset will be automatically dissolved. The new bill would delay that deadline by three months.

"This initiative will allow Likud and Blue and White the time...to reach a general solution to all the disagreements between themselves, in order to ensure continuous functioning of the government and prevent new elections," Derech Eretz said in a statement.

While the Likud has insisted that a one-year government is preferable, since no one can know what Israel's budget will be next year, due to the coronavirus crisis, Blue and White has continued to insist on a two-year budget, refusing to compromise.