Jerusalem  - Israeli President Shimon Peres is to meet with the rival leaders of Israel's two main political parties Friday, in an effort to build a grand coalition that can include both, Israeli media reported.

Peres is due to meet first with the head of the right-wing Likud party, Benjamin Netanyahu, who has the support of more of the Israeli parliament's political factions than his rival, Tzipi Livni.

Livni, current Israeli foreign minister and head of the centrist Kadima party, is set to meet Peres around noon. Livni's party won a slim majority in the February 10 general election.

Both sides have claimed the right to form a government, but on Thursday Netanyahu moved closer to being able to form a government after a key faction holding the balance of power in the Knesset recommended that President Shimon Peres nominate him as premier.

The Yisrael Beteinu party's recommendation means that the former premier now can count on the support of 65 legislators, enough to form a narrow coalition.

However Avigdor Lieberman, Yisrael Beteinu's controversial leader, has said that Netanyahu should form a broad-based coalition. (dpa)