JERUSALEM: The Israeli president’s office is confirming that Prime Minister Benjamin Netanyahu has canceled early elections.

In a statement early Tuesday, President Shimon Peres’ office said that Netanyahu had informed the president that he has reached an agreement with the leading opposition party, Kadima, to form a broad-based coalition government.

That agreement overrides Netanyahu's announcement Monday that his governing coalition would seek early elections.

The statement from Peres’ office confirms media reports earlier Tuesday that the elections were off.

The dramatic turn of events could influence any decision on a possible Israeli strike on Iran. Kadima’s leader Shaul Mofaz, a former military chief and defense minister, has been a vocal critic of Israel striking Iran's nuclear sites on its own.

We have been rescued from holding an early election. There will be a broad-based government,” Meir Sheetrit, a senior lawmaker and former finance minister with Kadima said on Israel Radio.

The agreement, expected to be signed later on Tuesday, is destined to give Netanyahu the support of as many as 94 lawmakers in Israel’s 120-member parliament and help his government survive without calling an early poll.

News of the deal negotiated secretly, called off a marathon debate being held in Israel's parliament that had been expected to culminate in a vote to dissolve itself after Netanyahu called last week for an early election to be held on Sept 4.

After hours of deliberation, the Knesset announced early on Tuesday it would not hold a final vote for dissolution.

The Knesset also said in a statement that as the plenum was preparing to vote, Netanyahu's Likud party and the opposition Kadima party had “urgently met ... to discuss significant political developments, apparently talks for a national unity government.”

Under the deal, Shaul Mofaz, a former military chief now head of Kadima after a party election ousted Tzipi Livni from that job in March, will be named vice premier in Netanyahu's government, officials said.

Kadima, with 28 seats, would add significant weight to Netanyahu's government and expectations are that if the alliance survives, Netanyahu could remain in power through the end of his term in late 2013.

Netanyahu's coalition with religious and ultra-right parties had been shaken by disputes over legislation exempting devoutly Orthodox Jews from military service, and next year's budget.