Former Israel PM Netanyahu Photograph:( AFP )
The country has faced four elections in the last two years. Netanyahu said he was "filled with motivation to topple this dangerous government" even as Naftali takes office.
After PM Naftali Bennett was sworn in as the prime minister of Israel, Palestinian PM Mohammed Shtayyeh said Netanyahu's reign was the "worst period in the history of the Israeli-Palestinian conflict."
However, Netanyahu said that his party will sit in the opposition and "return to lead the country our way" if there is a "bad government".
Netanyahu's government was involved in a 11-day clash with Hamas and militant elements in Gaza resulting in large scale destruction of the city as Israeli fighters conducted daily raids leading to rocket attacks by Hamas in retaliation. The peace deal was finally brokered by the Egyptian government amid fears it could turn into a large conflict.
Shtayyeh added that the Palestinian Authority condemns new Prime Minister Naftali Bennett support of Israeli settlements.
"The new government has no future if it does not take into consideration the future of the Palestinian people and their legitimate rights," Shtayyeh added.
Israel has faced four elections in the last two years. Netanyahu said he was "filled with motivation to topple this dangerous government" even as Naftali takes office.
Under the government formation deal, Naftali Bennett will be the prime minister till 2023 and then Yair Lapid will be taking over. Netanyahu was the prime minister for consecutive terms since 2009.
A vote in the Knesset resulted in 60 to 59 vote for Bennett in the 120-seat chamber which helped the party to scrape through as the new prime minister vowed that the new government "represents all of Israel".
Bennett sought to put his plan in action declaring that Israel won't allow Iran have nuclear weapons.
The coalition which is a combination of centrist, left-wing, right-wing parties has differences on several issues including the Palestinian Authority.
Naftali was congratulated by several world leaders including German Chancellor Angela Merkel, Canadian Prime Minister Justin Trudeau, British Foreign Secretary Dominic Raab and European Council president Charles Michel.
(With inputs from Agencies)