Israel's president has asked Prime Minister Benjamin Netanyahu to form a new government after power-sharing talks with his strongest rival, Benny Gantz, collapsed.

No clear path to power

Netanyahu, leader of the right-wing Likud party, still has no clear path to a fifth term after emerging from a second election this year short of a parliamentary majority.

Accepting the mandate from President Reuven Rivlin at a televised ceremony on Wednesday, a politically weakened Netanyahu said his chances of success were only marginally higher than those of Gantz, a former general who heads the Blue and White party.

Netanyahu, 69, and Israel's longest-serving leader, will have 28 days to form a coalition and can ask Rivlin for a two-week extension if necessary.

In his remarks, Netanyahu seemed to signal that he and Gantz would be able to take another stab at power-sharing, once it becomes clear there's no way out of the current deadlock, save for a third election that few in Israel want.

"If I don't succeed, I will return the mandate to you and with the help of God and Israel's citizens and yourself, Mr President, we will establish a broad national unity government down the line," he said.

A possible kingmaker?

Likud has the pledged support of 55 legislators in the 120-member parliament against 54 for Blue and White, final results released on Wednesday showed. The two parties failed to reach a coalition deal in talks launched on Tuesday.

Former Defence Minister Avigdor Lieberman, a possible kingmaker, has been keeping his far-right Yisrael Beitenu party on the fence since the September 17 ballot, citing differences with Likud's ultra-Orthodox religious partners and Blue and White alliance's left-wing allies.

Corruption allegations loom

Corruptions allegations against Netanyahu loom over the negotiations. Israel's attorney-general will hold a pre-trial hearing in October on his announced intention to indict the prime minister on fraud and bribery charges in three corruption cases. 

Netanyahu, who says he is a victim of a political witch-hunt, can argue at the session against being charged.

As prime minister, Netanyahu would be under no legal obligation to resign if formal charges were filed. But any other cabinet post might not offer him that protection.

(With input from Reuters)