JERUSALEM (Reuters) - Israel is close to holding new elections on Wednesday after former general Benny Gantz failed to form a new government after Avigdor Lieberman refused to back Netanyahu or his rival Gantz before a deadline for forming a government.

Al-Jazeera correspondent reported that Gantz returned the letter of authorization to form a government in Israel to the president after the failure of his efforts

Neither right-wing Likud leader Benjamin Netanyahu nor former General Gantz of the Blue White party won a majority in parliament that would qualify either to run alone in the April-September elections.

Netanyahu, who has been in power for a decade, failed to form a coalition after last September's elections that did not lead to an outright winner.

President Reuven Rivlin pledged the task to Gantz later, but the 28-day deadline for forming a government will expire at midnight (10 pm GMT).

There was no sign of progress on an agreement proposed by Rivlin to form a unity government that would include Likud and "White Blue" after weeks of talks.

The Maker of Kings
The leader of the far-right Yisrael Beiteinu party, Avigdor Lieberman, told a news conference today that both Netanyahu and Gantz were guilty of failing to conclude a coalition agreement that includes Likud and Blue White, which he firmly supports and defends.

Lieberman, who is now the kingmaker on the political scene, said that while there are no signs of a unity government on the horizon, he will deprive both men of the support of the eight members of his party in the Knesset, which effectively means that neither Netanyahu nor Gantz will have enough support to form. Government.

"Under the current situation, we are on the way to another election," Lieberman, a former defense minister, said, adding that he would not join any alternative to the Likud coalition and "white blue."

Lieberman reiterated his opposition to a Likud-led government that includes ultra-Orthodox Jewish parties opposed to their religious influence on life in Israel, or to a White Blue-led administration that relies on the support of Arab parties, which he called a "fifth column."

The tone, echoed by Netanyahu, has also drawn criticism from Rivlin, who has warned against demonizing the Arab minority, which accounts for 20 percent of Israel's population.

Rivlin has proposed a "rotation" agreement between Netanyahu and Gantz, in which a Likud leader would take leave from the premiership if officially accused of corruption, and Netanyahu denied any wrongdoing in the three cases.

Gantz rejected the participation of ultra-Orthodox Jews in a unity government, saying he wanted a "liberal" administration more in line with Israel's secular Jewish majority.

Netanyahu insisted that what he described as a right-wing bloc would need his support if he needed to seek parliamentary immunity from prosecution if indicted.

Charges of corruption
Israel's attorney general is widely expected to announce within days whether to accept police recommendations to indict Netanyahu.

There is no legal requirement for Netanyahu to leave the government if he is indicted, and he could face charges of fraud and dishonesty in all three investigations, and of bribery in one of them.

As the deadline expires today without a coalition agreement, a 21-day period in which Knesset members can nominate a member with at least 61 of the 120 members and a formal mandate from Rivlin to try to form a coalition will begin.

Failure automatically leads to elections within 90 days.