Israeli prime minister Yair Lapid has formally conceded defeat to Benjamin Netanyahu in this week's general election, paving the way for the right-wing leader to retake power after 17 months in opposition.

In a statement, Lapid congratulated Netanyahu on his election victory, and says that he has instructed the government to prepare for the transfer of power.

"I spoke tonight with the leader of the opposition, Benjamin Netanyahu, and congratulated him on his victory in the elections," Lapid said.

"The State of Israel is above all political consideration and I wish Netanyahu success for the sake of the people of Israel and the State of Israel.

"I informed the leader of the opposition that I had instructed all branches of the Prime Minister's Office to prepare an orderly transfer of power."

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Israeli prime minister and leader of the Yesh Atid party Yair Lapid and his wife Lihi attending an election campaign event of the Yesh Atid party in Tel Aviv (Photo by Avshalom Sassoni/Flash90)

With the vote count completed, Netanyahu’s right-wing religious bloc has won 64 of the 120 seats in the Israeli Knesset, decimating the majority of Lapid's big tent governing coalition.

Meanwhile, the leadership of the British Jewish community has said that it is "extremely concerned" by far-right politicians who are likely to form part of the new government.

The Board of Deputies of British Jews and the Jewish Leadership Council have released statements praising Israel's "free and fair" democratic process, while expressing concerns at statements made by far-right leaders on whom Netanyahu will depend in order to retake the premiership.

Itamar Ben-Gvir, leader of the Kahanist "Otzma Yehudit" party, has previously advocated the expulsion of Arab-Israelis who “are not loyal” to the state and his party supports the deportation of "Arab extremists" regardless of citizenship, including Party Joint List chairman Ayman Odeh, and the Neturei Karta Jewish anti-zionist sect.

The party supports total annexation of the West Bank, opposes Palestinian statehood and urges the end of the Oslo accords. It also backs legal immunity for IDF soldiers and wishes to ease restrictions on its rules of engagement.

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Head of the Otzma Yehudit party MK Itamar Ben Gvir speaks to supporters as the results of the Israeli elections are announced, at the party's campaign headquarters (Photo by Yonatan Sindel/Flash90)

Bezalel Smotrich, leader of the Religious Zionist Party, has previously declared himself a "proud homophobe", and has repeatedly voiced support for the Israeli state to be more religious and run according to the Torah and Jewish law.

In February 2022 the Board of Deputies of British Jews said they "reject his abominable views and the hateful ideology of Bezalel Smotrich and call on all members of the British Jewish community to show him the door," and “Get back on the plane Bezalel and be remembered as a disgrace forever."

Echoing those sentiments from earlier this year, the Board of Deputies said: "British Jews are deeply committed to Israel. The overwhelming majority of our community have direct and personal connections to Israel, which in turn enrich our own communal life. While we congratulate Benjamin Netanyahu on his election victory, we hope that the incoming government will work on behalf of all its citizens as well as striving to advance regional peace.

Bezalel Smotrich

Bezalel Smotrich [Flash 90)

"We are gravely concerned that the potential government will likely include individuals whose stated views and actions are in contrast to the tolerant and inclusive values of our community. We look forward to continue working with those in the new Israeli government and in civil society who seek to advance peace, security, prosperity, and fairness."

The Jewish Leadership Council released a similar statement, saying: "The commitment and attachment many diaspora Jews have to Israel is deep and longstanding. Israel is a free and fair democracy and we respect its robust democratic process. This does not mean we are not extremely concerned about some of the potential members of the governing coalition.

"Their views in relation to minorities and non-orthodox Jews raise serious concerns about the Israel we care about and support. We will continue to support those in the Israeli government and Israeli society who share the values of democracy, pluralism and inclusion."

READ MORE: Who are Itamar Ben-Gvir and Bezalel Smotrich and why are they so controversial?