Israeli Prime Minister Benjamin Netanyahu and opposition party leader Benny Gantz have agreed to form an emergency government.

Netanyahu and the former defense minister made the joint announcement after holding talks on Wednesday.

They said "a war management cabinet" will be established with three members -- Netanyahu, Gantz and current Defense Minister Yoav Gallant.

They said the new cabinet will be set up separately from the existing cabinet and focus on the ongoing fighting with the Palestinian Islamist group Hamas.

The joint announcement says that during the war period, no bills or government decisions will be promoted that do not concern the conduct of the conflict.

Netanyahu leads a coalition government formed by his right-wing Likud Party and far-right and religious parties.

His government and Gantz's opposition party have been at odds over the reform of Israel's judicial system and other internal affairs.

But the prime minister apparently aims to establish a more solid government by cooperating with the opposition to deal with the conflict with Hamas.