Israeli Prime Minister Benjamin Netanyahu has struck a deal with the opposition Kadima party, avoiding the early general election he had sought.

Kadima’s recently-elected leader, Shaul Mofaz, is set to be named deputy PM.

Mr Netanyahu said their new coalition wanted a “responsible” peace process with the Palestinians and “serious” talks about Iran’s nuclear programme.

The move came as parliament debated its dissolution before an election Mr Netanyahu had planned for September.