In a statement, the government announced that it will present the proposal to parliament on Monday.
If parliament is dissolved, a new election is likely to take place as early as October, writes The Jerusalem Post.
It would be the fifth election held in the country in three years.
The move is said to be a consequence of the shaky composition of the government, which consists of a number of different parties.
Earlier on Monday, the government barely made it out of two no-confidence motions.
A new election wants to stabilize the government's support in parliament, sources tell The Jerusalem Post.