Israeli Prime Minister-designate Benjamin Netanyahu initialed on Sunday midnight an agreement with the ultranationalist Yisrael Beiteinu party, the first deal aiming at forming a coalition, local media reported on Monday.

According to the deal, Chairman of Yisrael Beiteinu Avigdor Lieberman will be appointed Israel's next foreign minister, and Yisrael Beiteinu will also receive the portfolios of internal security, tourism, infrastructure and immigrant absorption, as well as chairmanship of the Knesset Constitution, Law and Justice Committee, the Ha'aretz daily reported.

The two sides also noted in their agreement that should a national unity government be formed with Kadima, these may undergo changes.

Likud is scheduled to meet on Monday with the negotiating team of Shas to hammer out the final details of an agreement, including allocation of portfolios to the religious party.

As the initial deadline to form a coalition was approaching soon, Netanyahu planned to complete negotiations by Thursday or next Monday at the latest, said Ha'aretz.