The Knesset voted before dawn Tuesday morning to back legislation dissolving the 24th Knesset and sending Israel to new elections.
The bills, voted on concurrently, were backed by 50 MKs, with no dissentions.
Lawmakers are scheduled to hold the final vote in the Knesset plenum by Wednesday night.
The vote was held early Tuesday morning after Coalition and Opposition lawmakers reached an agreement on state funding for political campaigns during the upcoming election, increasing the funding per Member of Knesset from 1.4 million shekels to 1.66 million, amounting to a total of extra 30 million shekels for campaign funds, raising to total to 200 million shekels.
Late Monday night, the two sides agreed to pass the dissolution bills by midnight between Wednesday and Thursday, following an extended period of time wrangling over when the elections would take place and argued over procedural issues.
The Coalition and Opposition parties have narrowed the possible election dates down to October 25 and November 1.
The sides also agreed that a proposal to ban an individual under indictment from becoming prime minister, a measure aimed at barring Opposition leader and former Prime Minister Benjamin Netanyahu from forming a new government, will not be put to a vote during the current session.