The Israeli prime minister has brought the centre-right Shinui party into his coalition to secure a slim majority in parliament that will allow him form a government.
Mr Ariel Sharon signed an agreement with Shinui a day after the National Religious Party (NRP), a champion of Jewish settlement on occupied land and an opponent of a Palestinian state, joined the coalition, said a spokesman.
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Israeli Prime Minister Ariel Sharon
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Shinui won 15 seats in the 120-seat parliament in the election on January 28. Led by former journalist Mr Yosef (Tommy) Lapid, Shinui surged on opposition to religious control over civil issues such as marriage.
Shinui's participation leaves Mr Sharon less dependent on any right-wing parties that are in the final line-up of the coalition.
Mr Sharon already had 61 seats in parliament after the agreement with Shinui but will continue talks with smaller parties to try and expand his coalition.
The prime minister, who won a sweeping electoral victory in January, has until at least the end of this month to form a government whose main tasks will be to tackle the almost 29-month Palestinian uprising and an economic crisis.
Mr Sharon had initially sought a wide coalition that would have included the center-left Labour Party, but the two parties could not reach an agreement on how to deal with an almost 29-month Palestinian uprising for independence.
Labour's participation in the coalition would have given a more moderate face to the government ahead of anticipated US pressure for Israeli concessions to the Palestinians, who are waging an uprising for independence, after any war in Iraq.