TEL AVIV (BLOOMBERG) - Israeli Prime Minister Benjamin Netanyahu will "return his mandate" to President Reuven Rivlin after being unable to form a government, according to a tweet by the Jerusalem Post's chief political correspondent.

Gil Hoffman said in a post that he will make the move "barring a change of heart" by Benny Gantz's Blue and White party on letting Netanyahu start as prime minister and bring allies with him into the coalition.

Netanyahu was tapped last week to form Israel's next government with no clear indication he would be able to pull that off and end weeks of political stalemate.

The decision late on Wednesday (Sept 25) by President Reuven Rivlin to hand Netanyahu first crack at building a coalition in parliament granted the Israeli leader a political lifeline a week before he faces a crucial hearing on the corruption allegations that have clouded the last three years of his tenure.

Blue and White, which won the most seats in elections earlier this month, rejected demands from Netanyahu to form a unity government under his leadership with his right-wing and ultra-Orthodox Jewish allies, according to the AP.

Gantz has not ruled out an alliance with Likud in but said he would not do so with Netanyahu facing indictment.