Israeli radio stations are reporting that Prime Minister-designate Tzipi Livni had given up efforts to form a coalition and would recommend early elections, the Associated Press reported.
Israel Radio and Army Radio both said that after consulting with her advisers during the evening, Livni decided not to continue efforts to form a governing coalition. They say she will tell President Shimon Peres on Sunday that she would call for a general election, most probably in February, more than a year ahead of schedule.
There was no official announcement. Livni's spokesman did not answer repeated phone calls.
Earlier in the evening Cabinet minister Tzahi Hanegbi, Livni's point man on the coalition talks, said in a television interview that Livni would make her decision known formally to Peres on Sunday.