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Benjamin Netanyahu's Likud party reached an interim deal with a right-wing religious bloc on Tuesday as time runs short for the former Israeli premier to build a coalition.

United Torah Judaism (UTJ) said the memorandum set out positions in the coming government, adding that "an extension needs to be requested from the president", Israeli broadcaster i24News reported.

Netanyahu has until Sunday to put together a coalition, expected to be a far-right alliance, though can request two additional weeks from Israeli President Isaac Herzog provided he can explain why discussions have yet to achieve success.

It is anticipated a further meeting will take place on Wednesday to sort out "fundamental issues" prior to a final agreement being reached.

The interim deal would see UTJ win the Jerusalem Affairs and Heritage Ministry and the Ministry of Construction and Housing.

It's also anticipated that the Ultra-Orthodox bloc will have several deputy ministers and parliamentary committee chiefs.

Netanyahu is one partner short of a majority in the Knesset, despite the interim deal with UTJ.

He currently has control of 53 of the legislature's 120 seats.

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That leaves Shas, an ultra-Orthodox party with 11 seats, as Likud's last likely ally.

After coming ahead in a 1 November election, Netanyahu was given 28 days to present a coalition.

Commentators predicted he would do so in short order, given the strong showing of religious-nationalist parties. But negotiations have proven protracted.

Reuters contributed to this report.