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Shaul Mofaz was elected leader of the Kadima party in March
Israeli PM Benjamin Netanyahu has struck a deal with the opposition Kadima party, avoiding the early elections he had previously sought.

Kadima's recently-elected head, Shaul Mofaz, is to be named a deputy PM in a deal set to be ratified later.

The surprise move was agreed at a secret overnight meeting.

It came as the parliament, or Knesset, debated its dissolution ahead of elections that Mr Netanyahu had planned for September.

A statement issued by Mr Netanyahu's office said: "A broad national unity government is good for security, good for the economy and good for the people of Israel."

President Shimon Peres welcomed the deal as "good for the people of Israel", his office said.

The new coalition government will have a parliamentary majority of 94 - one of the biggest in Israeli history.

Tal Law

According to an outline of the deal, Kadima would back Mr Netanyahu's Likud party in return for changes to the so-called Tal Law, which allows ultra-Orthodox Jewish seminary students to defer military conscription.

It was declared unconstitutional by the Supreme Court in February.

Secularists say the Tal Law is unfair, but small religious parties - which are crucial to Mr Netanyahu's present coalition - want ultra-Orthodox youths to continue to be allowed to opt for religious study over military service.

Labour party leader Shelly Yachimovich has condemned the deal, saying it is a "pact of cowards."

"This is the most ridiculous zigzag in the history of Israeli politics," she wrote on her Facebook page.

Four months ago Shaul Mofaz publicly called Mr Netanyahu a "liar", saying he had leaked an inaccurate quote in his name.

In March, he publicly pledged never to join Mr Netanyahu's government.

In addition to becoming vice PM, Mofaz will also join Netanyahu's inner circle - previously known as the Forum of Eight, and will become a member of the security cabinet.

Mr Netanyahu's right-wing administration had been scheduled to remain in power until October 2013.

He earlier announced plans to bring elections forward after disagreements with a junior coalition partner.

Opinion polls suggest Likud could win at least a quarter of the Knesset's 120 seats if the elections were held in the autumn.

The polls are not very accurate or trustworthy in Israel, but Benjamin Netanyahu is, by some stretch, the most popular politician, the BBC's Wyre Davies in Jerusalem reports.

Mr Netanyahu must be credited with leading one of the country's most stable governments of recent times, our correspondent says.

He says the main issues in any election would be, as ever, security, including now the threat from Iran, and relations with the Palestinians.