Israeli cabinet sets January 22 as election date

"Even during the three month election period, we will continue to act responsibly in order to safeguard the economy and, most importantly, to maintain Israelis' jobs and even add to them," Israel's hawkish Prime Minister Netanyahu said at the weekly cabinet meeting.

Netanyahu's ruling Likud party is likely to make security, especially the threat from Iran's nuclear programme, the main election plank.

Netanyahu called last week for an early election after his governing coalition failed to agree on the 2013 state budget.

The Palestinians have officially maintained that Israeli elections are an internal matter of Israel but some prominent Palestinian figures and analysts have expressed pessimism over the prospects of rekindling the stalled peace process going by the opinion polls which predict a clear mandate for a right-wing coalition.

A survey published on Thursday showed Netanyahu's right-wing Likud party winning 29 of parliament's 120 seats, up from a current 27, putting it in a prime position to form a coalition government.