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Sources did not confirm specifics about the prosecution's offer or whether former Israeli premier Benjamin Netanyahu was inclined to accept.
Yair Lapid launched as a scathing attack against Benjamin Netanyahu, whose corruption trial is the talk of the country.
Saar, who leans further to the right than Netanyahu, has advocated for the reduction of the Gaza Strip territory once Israel's war ends.
Benjamin Netanyahu, who is fighting corruption allegations in court, will have at least 28 days to build a coalition with his allies – two ultra-Orthodox Jewish parties and a rising extreme-right alliance called Religious Zionism.
Benjamin Netanyahu is charged with fraud, breach of trust and accepting bribes in a series of scandals in which he is alleged to have received lavish gifts from billionaire friends.
Yair Netanyahu, a favourite of far-right extremists around the world, has rose to prominence over his controversial statements and rants online.
Israel's1 November election, like the previous four, is focused largely on whether voters believe Netanyahu, who is on trial for corruption charges, is fit to lead the nation.
Benjamin Netanyahu, who is on trial, has been demanded to return dozens of expensive gifts despite denying he received them.
Bringing in Shin Bet and enhanced surveillance on top of ensuring the postponement of his corruption trial has ignited fierce criticism from Netanyahu's rivals.
Israeli Prime Minister Benjamin Netanyahu has ordered the expulsion of Likud activist Itzik Zarka, who mocked the Holocaust while insulting anti-government protesters.