The 73-year-old veteran politician Netanyahu's right-wing Likud party with supporting parties won a clear majority in the last Israeli election.
The result was predicted to be one of the most right-wing governments in the country's history, and it looks like it will be.
Religious Zionism gets ministerial post
Netanyahu has agreed with the extreme right-wing group Religious Zionism that the group will, among other things, receive posts such as minister of integration and minister responsible for settlements.
The grouping thus gains control over one of its major issues, and leader Bezalel Smotrich calls the settlement "a historic step" towards being able to expand settlements.
Need more support
According to AFP, around 475,000 Jewish settlers live today in the occupied West Bank, in communities that are considered illegal under international law.
The government building is not yet complete and Netanyahu needs the support of two more ultra-Orthodox parties.
He has until December 11 to form a government.