Israeli Foreign Minister Tzipi Livni’s Kadima party appears to have bounced back in the latest polls despite failing to form a unity government.
After holding intensive talks between political factions President Shimon Peres announced to Israel’s Knesset there was no chance of a coalition deal.
The Israeli parliament now has three weeks to dissolve and set an election date, widely expected to be in the early new year.
Livni will be buoyed by today’s polls which put her ahead of former Prime Minister Benjamin Netanyahu.
Despite being hit by current Prime Minister Ehud Olmert’s corruption scandal Livni’s Kadima has seen a resurgence in popularity.
The announcement of new elections comes after Livni failed to get support from the ultra-orthodox party Shas.
The possible division of Jerusalem in talks with the Palestinians remained a major stumbling block between the two.