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.
Israeli PM Benjamin Netanyahu said he was “determined to continue this operation until its aim is met.”
President Joe Biden asked Israeli Prime Minister Benjamin Netanyahu to move toward “the path to a cease-fire,” according to the White House.
The U.S. faces growing pressure to wade more deeply into diplomacy to end the worst Israel-Palestinian violence in years.
"Free Palestine" rallies have taken place in several major cities, including Washington, London, Montreal and Sydney, amid escalating Gaza-Israel violence.