Occupied Jerusalem: Israel's hard-line prime minister designate, Benjamin Netanyahu, will meet on Monday with the head of the dovish Labor Party after so far failing to tempt centrist leader Tzipi Livni into a broad, moderate coalition government.

Reluctant to rely for support on ultra-nationalists to his right, Netanyahu has appealed to Livni and Labor leader Ehud Barak to join him as partners in government but both have said they would rather go into opposition.

After a late-night meeting on Sunday, Livni said she and Netanyahu were still at odds over efforts to make peace with the Palestinians.

Netanyahu said he and Livni found many points of agreement and their disagreement could be "overcome with goodwill." He did not give details of the meeting.

Both said they agreed to meet again soon.