Jerusalem  - Setting in motion the process of forming Israel's next government, President Shimon Peres met Wednesday night with representatives of the Kadima party, to hear their views on whom to charge with the task of building a coalition.

Under Israeli law, the president has to meet with all factions which won Knesset seats in an election, to hear who they recommend for the premiership. He can then task any legislator with the job, but gives the nod to the one who has the best chance of forming a coalition.

Both outgoing Foreign Minister Tzipi Livni, whose Kadima party won 28 seats in last Tuesday's Israeli elections, and Benjamin Netanyahu, whose Likud faction scored 27 seats, have declared themselves winners of the election and demanded they be allowed to set up the new government.

Netanyahu, however, is seen as having the better chances of forming a coalition, since the right-wing block, which the Likud leads, won a combined 65 seats in the 120 seat Knesset.

Senior Kadima leaders told Peres Wednesday night that he should chose Livni to form a unity wall-to-wall coalition.

Earlier, Peres had said that the crucial issue facing Israel was not the identity of the country's next prime minister, but the policies of the country's next government.

The president's meeting with the Kadima representatives was the first consultations he has held since the February 10 elections. He was set to meet Likud officials later Wednesday night, and to meet with other parties on Thursday. (dpa)