Washington: The United States expects the next Israeli government to end nearly 50 years of occupation and clear the way for a Palestinian state, White House chief of staff Denis McDonough told Jewish Americans on Monday.

To cheers from the liberal Jewish group J Street, Mr McDonough vowed to safeguard Israel and criticised Israeli Prime Minister Benjamin Netanyahu's abandonment of a Palestinian state in the run-up to his re-election on March 17.

At odds: US President Barack Obama and Israeli Prime Minister Benjamin Netanyahu at the White House in September 2010. Credit:Reuters

Mr Netanyahu is working to form Israel's next coalition government. Israeli President Reuven Rivlin announced on Monday that Mr Netanyahu had secured the backing of 67 of the 120 MPs elected last week and officially designated him to form the next government. Likud received the backing of the far-right, pro-settler Jewish Home party, the ultra-nationalist Yisrael Beitenu party and the centrist Kulanu, along with ultra-Orthodox parties.

Mr Netanyahu has 28 days to form a coalition. He can ask Mr Rivlin for a 14-day extension, but his aides said he aimed to announce his government before Israel's Independence Day on April 23.