Israel's minister of welfare and social services and communications resigned Monday during a Likud party meeting held at the Israeli Knesset (parliament).

Moshe Kahlon, one of the coalition ruling party's most popular rising political stars, said he intended to "take a break from politics" and not pursue re-elections in the upcoming Jan. 22 elections.

"I will actively try and help the Likud because I believe in its way. I hope that the Netanyahu government will carry on the reforms it had commenced because of the expensive cost of living -- there is something to do about it," Kahlon said during the meeting.

Prime Minister Benjamin Netanyahu thanked Kahlon for his service and said that he would be happy to see him back within his party.

Jerusalem Post newspaper polls in December 2010 and July 2011, favorably mentioned Kahlon as the most popular cabinet minister.

While some political analysts said Kahlon was angling for a fast-track private sector position, sources behind the scenes told the newspaper on Monday that Kahlon's departure may have been fueled by disagreements with Netanyahu.

The sources charged that the two had butted heads over planned cuts in the 2013 budgets that would hurt the social services ministry budget.

Other sources told Channel 2 news that Kahlon's departure might be a political move to get a promise out of Netanyahu to appoint Kahlon foreign minister in the next government, instead of Finance Minister Yuval Steinitz.

The news, which spread like sparks in dry tinder through the Israeli media Sunday evening, surprised politicians and political analysts alike.

Kahlon's reforms in the mobile phones market led to drastic price cut for cellular phone users, which enabled more players enter the industry.

His public popularity stemmed from his battle, as communication minister, against the country's main mobile phone providers, urging them not to coordinate rates, and allowing other firms to enter the industry in order to boost competition.

The political sphere was shocked at Kahlon's decision, with many lawmakers calling on him to re-consider his decision.

Defense Minister Ehud Barak told Israel Radio on Monday that Kahlon was a "rare kind" of politician and described his move as " a loss."