Israeli media outlets reported that Netanyahu contacted Jewish Home party leader Naftali Bennett in order to start negotiations to form a right-wing government.

Likud officials, however, were quoted by the Ha'aretz daily as saying that Netanyahu will try to form a unity government with the Zionist Union.

The center-left Zionist Union said that the Likud is misleading the public and trying to create an atmosphere to suit its needs.

"Likud keeps misleading the public," the Zionist Union said in a statement. "The right-wing bloc has shrunk. Everything is possible until the real results are in, when we will know which parties passed the electoral threshold and which government we can form."

"All the spins and statements are premature. A negotiations team has been formed in an effort to form a government led by Herzog," the statement read.

Nachman Shai, a lawmaker of the Zionist Union, told reporters in Tel Aviv it is too early to draw conclusions.

"I'm pleased on the one hand that the Zionist Union doubled its power, it's a major success. It may not be enough to form a government but it is too early to draw conclusions. We may build a coalition with other partners and prevent Netanyahu from forming one. Let's wait and see for a few days before we make any conclusions," he said.