The 71-year-old leader is currently battling three corruption cases on the charges of fraud, bribery and breach of trust – all of which Mr Netanyahu denies, saying, without evidence, that he is the victim of a deep state conspiracy against him.
If he were to go into opposition, he could be denied parliamentary immunity and the new government could very easily pass legislating banning him from office.
Lawyers for Mr Netanyahu’s Likud Party had already tried hard to stop the emerging coalition this week by stating Mr Bennett’s right to serve as Prime Minister was illegal.
However, President Rivlin knocked down the challenge before it could gain any real momentum.
Mr Netanyahu is less than happy about the formation of the coalition, citing the creation of a “dangerous, left wing government” that is the “fraud of the century”.