Under the new coalition, Lapid and Bennett will split the prime minister role in turns, with Bennett set to serve the first two years.
Lapid announced on Twitter the coalition had been formally presented to President Reuven Rivlin.
“I pledge that this government will work in the service of all Israeli citizens, those who voted for it and those who did not,” Lapid said. “It will respect its opponents and do everything in its power to unite and connect all parts of Israeli society.”
The agreement is the first-ever coalition deal signed by an Arab party, first reported the Jerusalem Post.
Check back on this developing story.