Netanyahu and opposition face close fight in Israeli election with no clear winner - ABC News & Headlines – Australian Broadcasting Corporation

Gadi Eisenkot says the results are a vote for change. (Reuters: Shir Torem)

Israel's next prime minister is yet to be decided, as early results from the country's most contentious election in decades show a tight race between the leading blocs.

Benjamin Netanyahu's Likud party is projected to remain the largest party in the next Knesset but has lost support, with early results indicating it will keep 27 of its original 32 seats.

The main opposition party, Yashar, led by former military chief Gadi Eisenkot, is projected to secure between 21 and 22 seats.

As of 5:30pm (AEDT), with more than half the votes counted, early results indicated Mr Netanyahu's coalition would secure 55 seats, and Eisenkot's bloc would win 49.

It means neither leader is expected to secure the 61 seats needed to govern, and it could be some time before the next prime minister is declared.

The remaining 16 seats in the Knesset, according to early results, will be held by the Arab parties, meaning their support could be needed to form government.

Despite there being no clear winner on election night, Mr Eisenkot hailed the early results as a vote for change.

"The Israeli public has voted against Netanyahu continuing to serve as prime minister of Israel," he told his supporters in Tel Aviv.

Mr Netanyahu hit back in his speech in Jerusalem, saying Likud was the "largest party in Israel" and that the right-wing bloc had a "decisive majority … among the Jewish public".

The election was marked by high voter turnout, including a surge in voters from Arab communities, as well as dips in support for the conservative parties.

This election has seen the biggest voter turnout since 1988, with almost 78 per cent of the nation voting and large numbers heading to polls into the eleventh hour, according to the Central Elections Committee.

It has led to some significant shifts in voting trends and has squeezed minor parties.

The far-right parties, which had propped up the Netanyahu government in the last term of government, led by Itamar Ben-Gvir and Bezalel Smotrich, are projected to secure only six seats each.

Benjamin Netanyahu said his Likud party was the largest in Israel. (ABC News: Hamish Harty)

Arab parties, the United Arab List and the Joint List, which have traditionally had low voter turnout despite one-fifth of Israel's population being Arab, could play the role of kingmakers in the next parliament.

Both leaders have previously ruled out governing with the Arab parties.

Many who describe themselves as Palestinian citizens of Israel have experienced heightened discrimination in the past three years, and have mobilised against Mr Netanyahu in response.

Those added votes, along with low voting numbers from the Ultra-Orthodox Jewish community, who are caught up in a military draft exemptions saga, have meant the share of votes for the Netanyahu right-wing bloc has dwindled.

However, votes from soldiers and reservists, which are counted last, may belatedly boost those numbers.

Israel's political landscape has always featured coalitions, with no single party ever achieving the 61 seats needed to form a majority government in a 120-seat parliament.

With no clear winner, President Issac Herzog will decide which party leader has the best chance of forming government.

All but one party have previously ruled out forming a coalition with the Arab parties, including Yashar.

Mr Netanyahu proclaimed in his speech that it was "forbidden to form a government that relies on Arab parties", saying they were "in favour of the destruction of the state of Israel".

If no government is formed after 42 days, Mr Netanyahu's current cabinet will stay on as caretaker government and a new election will be called.

Mr Eisenkot rejected that prospect and called for the prime minister to accept defeat.

"A worthy leader would accept the people's vote of no confidence and announce his retirement from political life today," he said.

"After an election with such high voter turnout, it would be a mistake to hold another election.

"It is our duty, and my personal duty, to do everything possible to respect the will of the people."

He said his party intended to form a "stable Zionist government that serves all Israeli citizens".

"Millions of Israelis have had enough of the culture of lies, of failure, of division and incitement," he added, referring to Mr Netanyahu's time in power.

This election has been widely viewed as a referendum on Mr Netanyahu's tenure as the longest-serving prime minister in Israel's history, where he has been in power for 19 of the past 30 years.

Domestically, he has been heavily criticised for security failings which allowed for Hamas's October 7, 2023 attacks, and has been facing trial in three corruption cases. Internationally, while less influential on the election, he is subject to an arrest warrant over his government's actions in Gaza.

Mr Netanyahu campaigned on his reputation as "Mr Security" and his strength against foreign adversaries, with this being the first election after three years of wars in Gaza, Lebanon and Iran.

Benjamin Netanyahu said Israel was stronger than ever. (ABC News: Hamish Harty)

In his speech, he repeated that Israel had "a historic, once-in-a-lifetime opportunity … to remove the existential threat from Iran once and for all", calling it a sacred mission.

"We removed an immediate existential threat that hung over us, the danger of immediate destruction. We struck the Iranian regime and brought it to the edge of the abyss. Iran is weaker than ever, Israel is stronger than ever," he said.

"We prevailed over our enemies, and together we will prevail over them in the future too."

Mr Eisenkot addressed Mr Netanyahu directly, saying: "Do not dare use Israel's security for your political needs.

"Israel is on the path to a new era, an era of hope, mutual responsibility and solidarity."