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Talks between the two leading parties in Israel's deadlocked elections have fallen apart, deepening a protracted political crisis just as Prime Minister Benjamin Netanyahu's lawyers started his defense against a possible indictment on corruption.

Benny Gantz, the ex-military chief whose fledgling alliance, the Blue and White Party, has bested Mr Netanyahu's Likud in two back-to-back inconclusive elections, called off talks with the four-time premier to form a unity government. 

Unless talks resume next week, Mr Netanyahu is likely to inform President Reuven Rivlin that he is unable to form a governing coalition of at least 61 seats, increasing the likelihood of a third election. 

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