The new coalition, agreed after weeks of deadlock, will be the first in a decade, and one of the few in Israeli history, to exclude ultra-Orthodox Jewish parties.

Israeli Prime Minister Benjamin Netanyahu reached an agreement on Thursday to form a new coalition government that is expected to try to curb years of preferential treatment for the ultra-Orthodox minority and may push for restarting peace efforts with Palestinians.

The new coalition, agreed after weeks of deadlock, will be the first in a decade, and one of the few in Israeli history, to exclude ultra-Orthodox Jewish parties.

It includes two new rising stars in Israeli politics and is well positioned to end a controversial system of draft exemptions and generous welfare subsidies granted to ultra-Orthodox seminary students.

Significant progress on the peace front could be more difficult, given bitter disagreements among the coalition members as well as deep differences with the Palestinians.

Nonetheless, Mr. Netanyahu’s senior partner, the centrist Yesh Atid party, is vowing to at least make an effort to restart negotiations. The peace process remained frozen throughout Mr. Netanyahu’s previous four-year term, when his right-wing party partnered with other hard-line and ultra-Orthodox factions.

“We have to begin talks with the Palestinians immediately. We need to sit at the negotiation table. We haven’t sat there for four years,” said Yael German of Yesh Atid, who is expected to serve as the new Health Minister. “Let’s sit and proceed toward a peace agreement. It is essential,” she told Army Radio.

Mr. Netanyahu’s Likud-Yisrael Beitenu faction wrapped up weeks of coalition negotiations with Yesh Atid and the Jewish Home, a party aligned with West Bank settlers, overnight.

The deal was expected to be signed later in the day, and the new government should be sworn on Monday, just two days before President Barack Obama is scheduled to arrive.

Although Mr. Netanyahu’s bloc emerged as the biggest faction in the Jan. 22 election with 31 seats, he struggled to form a coalition with the necessary 61-seat majority of 120 seats in parliament. His new coalition is expected to control a 68-seat majority.

The negotiations stalled over several thorny issues, including the division of key Cabinet portfolios and plans to reform the draft.

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