Israeli Prime Minister Benjamin Netanyahu has reached an agreement with the main opposition party to form a national unity government and cancel early elections, local media reported early Tuesday morning.

The Kadima opposition party will join Netanyahu's government, and its chairman Shaul Mofaz is expected to be appointed as a minister in the government, according to the Haaretz daily.

Haaretz said Kadima agreed to join Netanyahu's government on condition that the government supports a proposal for an alternative to the Tal Law, which allows full-time yeshiva seminary students indefinitely put off military service.

The agreement came as the Knesset, Israel's parliament, was discussing to dissolve its current session ahead so as to pave the way for early elections.

Netanyahu said Sunday that he wanted to bring forward the general elections due to political extortion from his coalition partners, and proposed on Monday to his cabinet that the elections would be held on Sept. 4, which had originally been set for 2013.