Israeli opposition parties have reached an agreement to form a new government that would end Benjamin Netanyahu's 12-year tenure as prime minister.

Yair Lapid, leader of the centrist Yesh Atid party, announced an eight-faction coalition had been formed.

Under a rotation arrangement, the head of the right-wing Yamina party, Naftali Bennett, would serve as prime minister first before handing over to Mr Lapid.

There still needs to be a parliamentary vote before the government is sworn in.