Sharon clinches key coalition deal

Mr Sharon sought Shas' support before the election

Israeli Prime Minister-elect Ariel Sharon has signed a deal with the ultra-Orthodox Shas party to include it in his coalition government.

The agreement is the latest stage in Mr Sharon's attempts to put together a national unity government. Correspondents say this will create conditions for him to take power later this week.

Shas leader Eli Ishai: the party says it joined because of the security situation

On Friday, Mr Sharon gave cabinet jobs to two small ultra-nationalist right-wing parties, and an Arab was included in the cabinet for the first time.

The defeated Labour Party, which has agreed to take part in Mr Sharon's national unity government, has chosen former general Binyamin Ben Eliezer as defence minister and confirmed former Prime Minister Shimon Peres as foreign minister.

Boost for Sharon

Shas is the third largest party in the Israeli parliament.

Its agreement to serve in the government will give Mr Sharon a majority of four in the 120-seat parliament.

Shas spokesman Itzik Sudri told Reuters news agency that the party would occupy five ministries in Mr Sharon's cabinet, including the interior ministry.

Mr Sudri said the decision to join had been prompted by Sunday's violence, in which a Palestinian suicide bomber killed three Israelis in the coastal town of Netanya.

Cabinet nominees

Foreign Minister - Shimon Peres (Labour)

Defence - Binyamin Ben Eliezer (Labour)

Transport - Ephraim Sneh (Labour)

Tourism - Rehavam Zeevi (National Union Party)

Agriculture - Shalom Simhon (Labour)

Infrastructure - Avigdor Lieberman (Yisrael Beitenu)

Industry and Trade - Dalya Itzik (Labour)

Science, Culture and Sport - Matan Vilnai (Labour)

Without Portfolio - Raanen Kohen and Salah Tarif (both Labour)

The two ultra-nationalist right-wing groups, the Russian party Yisrael Beitenu and the National Union Party, which agreed to join the new government on Friday, are to take three ministerial posts between them.

And Salah Tarif, a member of the Druze community and a Labour nominee, will take a ministerial post without portfolio.

Correspondents say questions are likely to be asked in the Labour Party about how much common ground there could be between political opposites.

Since being elected prime minister last month, Mr Sharon has been racing to put together a coalition.

He is expected to present his proposed national unity government to the Israeli parliament, the Knesset, for approval this week.