Naftali Bennet, chairman of Israel's right-wing Habayit Hayeudi (the Jewish Home) Party, is set to be appointed as the new finance minister, local media reported Tuesday.

Bennet, whose party got 12 seats in the parliament out of the overall 120 in the January elections, accepted incumbent Prime Minister Benjamin Netanyahu's proposal to head the treasury instead of outgoing minister Yuval Steinitz, the Walla! news website reported.

The proposal was apparently made during a meeting between the two held on Sunday, as part of the negotiations to form a new coalition. The two have reportedly agreed on the terms, but the coalition papers remain to be officially signed.

Netanyahu, whose bloc received 31 seats in the elections, is currently on his fifth week of attempting to build a government, after being assigned to do so by President Shimon Peres on Feb. 2. He was given a 14-day extension on Saturday from Peres after his original 28-day time frame ran out.

On Thursday, Israeli news outlets reported a breakthrough in coalition talks between the Likud and The Jewish Home, as well as with the centrist Yesh Atid party, led by Yair Lapid, which received 19 seats in the elections and became the second largest in size.

Lapid and Bennet formed a strong alliance and vowed not to enter Netanyahu's coalition without the other, thus making life hard for Netanyahu. The two specifically insisted on promoting the issue of equalizing the burden in the Israeli society, specifically conscripting ultra-Orthodox men.

Their stand forced Netanyahu to rid his so-called "natural allies," the ultra-Orthodox parties, who vehemently oppose such a move.

Netanyahu tried until the nick of time to get the Labor Party chief, Shelly Yachimovich, to agree to enter the coalition so he could keep the ultra-Orthodox in as well and push Lapid and Bennet out. However, Yachimovich refused, citing a "huge gap" in the two parties' socioeconomic agenda.

Bennet, a newcomer to politics whose nationalistic party includes several settlers, will have to face urging financial concerns such as the need to pass a budget for 2013, which will include four billion U.S. dollars in cuts to handle the 10.5- billion-dollar deficit.

In addition, Bank of Israeli Governor Stanley Fischer announced in January that he would be leaving his post in June.

It is yet to be clear whether Lapid would get the foreign affairs portfolio or whether Netanyahu would keep it secured for Avigdor Lieberman, his No. 2 at the Likud-Beytenu joint party, who is now facing trial for fraud and breach of trust.

On Tuesday, Attorney General Yehuda Weinstein instructed his deputy to look into the legality of securing a spot for Lieberman while undergoing legal proceedings. Endi

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