"However Livni's ruling Kadima party may suffer a setback in the upcoming elections, with weekend polls giving the centrist party 24-25 seats, against 29 in the current parliament.
Netanyahu's hawkish Likud party is tipped to head the next government in a right-wing coalition including the ultra-nationalist Yisrael Beitenu party, which has advocated the expulsion of Arab citizens.
In coalition with Jewish religious parties and Yisrael Beitenu, a Likud-led bloc would secure a majority of 62-63 seats, Friday's polls said."
http://www.google.com/hostednews/afp/article/ALeqM5g1ducHrywPiOO6svu1qYFsiefACQHowever, it is entirely possible that he could take a different route and invite Labor into the coalitions - for the sake of respectability and greater legitimacy.
The article above went on to say:
"No one wants to fall out with the new US president and spin doctors have tried to put a gloss on Netanyahu's past record.
The Likud chairman has said he will have no problem with Barack Obama's administration, which favours a two-state solution with security guarantees for Israel.
But Netanyahu has remained vague on the peace process saying he supports broad autonomy for the Palestinians and strengthening the West Bank economy, yet he opposes the creation of a state with real sovereign powers. "
http://www.google.com/hostednews/afp/article/ALeqM5g1ducHrywPiOO6svu1qYFsiefACQ.