Benjamin Netanyahu will reportedly offer Bezalel Smotrich's Religious Zionism party the opportunity to oversee Israel’s civil administration in the West Bank.
The country's Prime Minister-designate has been overseeing talks between coalition partners following the emergence of Likud as the leading party in this month’s general election.
Likud and Religious Zionism have been wrangling over several issues, namely finances, throughout negotiations over Israel’s next government, but Israeli newspaper Haaretz claims that, while no details have been finalised, Mr Netanyahu has offered the latter party several powers within the Civil Administration (CA) that is overseen by Israel’s Defence Ministry.
The publication also says that the offer with only be confirmed should Mr Smotrich and Mr Netanahu agree on CA policies.
The CA administers work permits for Palestinians and liaises with the Palestinian Authority on key issues including security, and infrastructure.
It also has authority over construction by Palestinians and Israelis in Area C of the West Bank.
It comes amid spiralling tensions in the region, with a spate of recent attacks marking one of the West Bank's worst spates of unrest since 2015.
Mr Smotrich, a far-right figure, has previously attracted fierce criticism from Naftali Bennett in 2016 after tweeting his support for the separation of Arab and Jewish women in maternity facilities.
Last year he garnered backlash for claiming “Ben Gurion should have finished the job” by removing all Israeli Arabs from Israel during the founding of the state, and he has supported the reform of Israel’s judicial system to make it more religious.