Israel election: Netanyahu claims poll 'victory'

This was despite TV exit polls suggesting his Likud party had finished in a virtual tie with the left-of-centre Zionist Union.

Mr Netanyahu said he had already spoken to the leaders of other right-of-centre parties about forming a new government.

But opposition leader Yitzhak Herzog said the result showed his alliance could not be ignored.

Estimates by two Israeli broadcasters gave both sides 27 seats each in the 120-seat parliament, the Knesset.

In a speech to his jubilant supporters in Tel Aviv, Mr Netanyahu described Tuesday's vote as a "great victory" for the right-wing Likud party, which is now credited with a better result than expected.

Likud had trailed the centre-left Zionist Union in opinion polls in the run-up to the poll.

Mr Netanyahu said the result was achieved "against all odds".

He urged the leaders of what he described as Israel's "national camp" to create "a government without delay".

However, the centre-left Zionist Union dismissed what it termed "spin" from Likud as "premature".

The Likud activists were dancing and singing within minutes of the TV stations broadcasting their exit polls quite simply because they can see a relatively simple pathway towards the formation of another right-wing coalition.

It would involve Mr Netanyahu teaming up with the secularists of Yisraeli Beitenu and Kulanu, and adding the religious nationalists of Jewish Home and the parties that represent ultra-orthodox Jews like Shas.

The outline of a workable coalition can be seen much more easily from this vantage point than from the point of view of the leftist Zionist Union led by Yitzhak Herzog.

He campaigned well and if the exit polls are to be believed he polled pretty well too - but the coalition arithmetic simply doesn't look so good for him.

Mr Herzog told his supporters he was confident of forming the next government.

"We have achieved an unbelievable achievement today.

"I will do all that I can in order to create a real socially minded government for Israel."

Final results are not expected until Wednesday morning.

When final results are known, President Reuven Rivlin will give the task of forming a government to a party leader who he thinks has the strongest chance of assembling a coalition.

Israel's form of proportional representation always produces smaller parties and coalition government, the BBC's Middle East editor Jeremy Bowen in Tel Aviv reports.

He says Mr Netanyahu's premature declaration of victory was based on his confidence that he has more allies among the smaller parties than Mr Herzog.

Mr Netanyahu could become Israel's longest-serving leader if he secures a fourth term.

No party has ever won an outright majority under Israel's proportional representation voting system.

Almost 72% of those eligible voted in the election, which ended at 22:00 local time (20:00 GMT). The turnout was four points higher than the previous election in 2013.

Israel's Channel 1 and Channel 10 both projected 27 seats each for Likud and Zionist Union, while Channel 2 gave Likud a one-seat lead, with 28 seats.

Sixty-one seats are needed in order to secure a majority.

The Joint Arab List, an alliance of Israeli Arab-dominated parties, has come third with about 13 seats, the exit polls suggest.

It has said, however, that it will not take any positions in government.

Mr Netanyahu had vowed not to allow the creation of a Palestinian state if he wins a fourth term, while Zionist Union has expressed support for a two-state solution and promised to repair relations with Palestinians and the international community.