Senior political source says gap between Blue and White and Likud, particularly over issue of PM's legal situation, is unbridgeable.

A senior political source is quoted in Israel Hayom as stating that in the current situation - especially after last week's interrogation of government spokespeople and the reactions it has provoked in both camps - the differences in positions between the parties have become too large and unbridgeable. According to the source, there is no chance of establishing a unity government.

The source states that the prime minister's legal issue is the main obstacle preventing a unity government. He said that Blue and White expects within a few weeks a decision by the attorney general to indict Netanyahu. As far as Blue and White is concerned, even if Mendelblit decides against bribery charges, any indictment will block the possibility of forming a government with Netanyahu.

On the other hand, according to the source, Netanyahu wants to continue as prime minister even after an indictment and does not intend to leave his position earlier.

"The unity government is dead and Israel is on its way to a third election," the source is quoted as saying.

Nevertheless, New Right chairwoman MK Ayelet Shaked has been trying to create a situation that would bring Yisrael Beytenu chairman Avigdor Liberman back to the right-wing bloc and enable the establishment of a narrow right-wing government.

On Monday, Shaked met with Liberman for a lengthy conversation. Afterwards, she also met with United Torah Judaism chairman Yaakov Litzman and Degel Hatorah chairman MK Moshe Gafni.

The meetings focused on a compromise on issues of religion and state, and especially on the Draft Law, which would allow the parties to sit together in government, as was the case throughout much of the term of the previous Knesset.

Both sides are willing to listen but find it difficult to compromise. Liberman's side is interested in recording an achievement on the Draft Law, while the haredi side seeks to prevent the law from becoming too sharply-worded.