New elections will be held on Nov. 1.
In a nationally televised news conference, Prime Minister Naftali Bennett said it wasn’t easy to disband the government, but he called it “the right decision for Israel.”
Trump's attack on Benjamin Netanyahu for congratulating the president-elect is "absolutely crazy; he is a pathetic man,” said Ehud Olmert.
"I liked Bibi. ... But I also like loyalty. ... Bibi could have stayed quiet. He has made a terrible mistake," Trump said, according to an Israeli author's account in Axios.
The U.S. secretary of state and Yair Lapid met in Rome as part of a push to create a lasting alliance between the two countries.
Naftali Bennett, a former ally of Netanyahu turned bitter rival, becomes prime minister.
If approved by the Knesset, or parliament, centrist Yair Lapid and his diverse partners will end the 12-year rule of Benjamin Netanyahu.
Sunday's announcement by Yamina Party leader Naftali Bennett is a key step toward ending Prime Minister Benjamin Netanyahu's 12-year rule.
U.S. Secretary of State Antony Blinken began a regional tour to shore up last week's cease-fire between Israel and Gaza's Hamas rulers.
Thousands took to the streets of Gaza as the cease-fire took hold. Spontaneous celebrations also broke out in east Jerusalem and across the occupied West Bank.