A powerful Israeli minister seen as a potential leadership rival has said he will not quit Benjamin Netanyahu’s coalition despite differences over a truce in Gaza, in a dramatic turnaround that has dragged the government back from the brink of collapse.

The announcement by far-right education minister Naftali Bennett on Monday morning has salvaged Mr Netanyahu’s parliamentary alliance, which was left with a one-seat majority when the country’s defence minister Avigdor Lieberman quit last Wednesday, taking his party with him.

Members of Mr Bennett’s religious nationalist party, Jewish Home, had threatened to also pull their eight seats from the coalition unless Mr Bennett was handed the defence portfolio after Lieberman’s dramatic exit.

Instead, Mr Netanyahu kept the defence position for himself and in a stunning change of heart, Mr Bennett said he would give the premier time to correct the course on a range of issues.

“If the prime minister is serious in his intention … I am saying here to the prime minister we are removing at this moment all of our political demands and will help you in the huge mission of making Israel win again,” Mr Bennett said in a televised speech.

He did, however, criticise Mr Netanyahu’s recent policies saying “something bad is happening on the inside, including during the last decade in Netanyahu’s governments – the state of Israel stopped winning”.

Mr Bennett acknowledged he may “pay the political price” for backing down from earlier ultimatums.

“It’s better that the prime minister beats me in a political battle than [Hamas leader Ismail] Haniya beats Israel,” he concluded.

Israel’s justice minister Ayelet Shaked, who attended the same press conference, backed Mr Bennett’s statement.

”We will not further strengthen the political win that Lieberman gave to terrorist organisations,” she said.

Sources within the Jewish Home party who are close to Mr Bennett told The Independent that his decision was dependent on the prime minister changing his “defence policy and restoring the deterrence of Israel”.

“The prime minister has taken that on – he said he would do so. We will stand by his assertion to do so,” the official said.

Mr Bennett’s comments followed an impassioned address to the nation on Sunday night by the prime minister who announced he would retain the defence portfolio for now and seek to convince coalition partners to remain in the government.

He said calling early elections would be “irresponsible” due to a complicated security situation facing the country.

Gaza crisis: heavy cross-border fire in pictures Show all 23 1 /23 Gaza crisis: heavy cross-border fire in pictures Gaza crisis: heavy cross-border fire in pictures A ball of fire above the building housing the Hamas-run television station al-Aqsa TV in the Gaza Strip during an Israeli air strike AFP/Getty Gaza crisis: heavy cross-border fire in pictures Israeli Iron Dome anti-missile systems firing toward missiles fired from the Gaza Strip near the southern city of Sderot, Israel. Israeli army report that approximately 300 missile launches were identified from the Gaza strip toward Israel. Dozens of launches were intercepted by the Iron Dome aerial defense system EPA Gaza crisis: heavy cross-border fire in pictures Israeli soldiers take cover near the Israel Gaza border AP Gaza crisis: heavy cross-border fire in pictures A bus set ablaze after it was hit by a rocket fired from the Gaza Strip. Israel's military said it was carrying out air strikes "throughout the Gaza Strip" on Monday after rocket fire from the Palestinian enclave towards its territory AFP/Getty Gaza crisis: heavy cross-border fire in pictures Palestinians inspect a rubble of a destroyed internal security building of Hamas interior ministry after Israeli air strike in Gaza City EPA Gaza crisis: heavy cross-border fire in pictures A Palestinian girl walks up the stairs of her family house that was damaged in an Israeli air strike REUTERS Gaza crisis: heavy cross-border fire in pictures Fire and smoke billow following Israeli air strikes targeting Rafah in the southern Gaza Strip, near the border with Egypt AFP/Getty Images Gaza crisis: heavy cross-border fire in pictures Missiles from Israel's Iron Dome air defence system in the south of Israel destroy incoming missiles AFP/Getty Images Gaza crisis: heavy cross-border fire in pictures Israeli security forces and firefighters gather near abuilding set ablaze after it was hit by a rocket fired from the Gaza Strip, in the southern Israeli town of Sderot AFP/Getty Gaza crisis: heavy cross-border fire in pictures epa07162276 A Palestinian girl stands between the rubble of her family house close a destroyed building of Al-Aqsa channel belonging to Hamas movement after Israeli air strike in Gaza City, 13 November 2018. According to reports, Palestinian militants fired 300 rockets and mortars at Israel from the Gaza Strip. The Israel army responded with strikes on what it said were targets belonging to Hamas and Islamic Jihad. EPA/MOHAMMED SABER MOHAMMED SABER EPA Gaza crisis: heavy cross-border fire in pictures A picture taken on November 12, 2018 shows a ball of fire above the building housing the Hamas-run television station al-Aqsa TV in Gaza City during an Israeli air strike. - Israel's military said it was carrying out air strikes "throughout the Gaza Strip" after rocket fire from the Palestinian enclave towards its territory. (Photo by Bashar TALEB / AFP)BASHAR TALEB/AFP/Getty Images BASHAR TALEB AFP/Getty Images Gaza crisis: heavy cross-border fire in pictures A ruble of a destroyed building of Al-Aqsa channel belonging to Hamas movement EPA Gaza crisis: heavy cross-border fire in pictures Israeli security forces and firefighters gather near a bus set ablaze after it was hit by a rocket fired from the Palestinian enclave AFP Gaza crisis: heavy cross-border fire in pictures Relatives of Mohammed Ouda, killed in an Israeli air stike the previous day, mourn during his funeral in Beit Lahia in the northern Gaza Strip AFP/Getty Images Gaza crisis: heavy cross-border fire in pictures Missiles from Israel's Iron Dome air defence system in the south of Israel destroy incoming missiles fired at Israel from the Palestinian enclave AFP/Getty Images Gaza crisis: heavy cross-border fire in pictures Israeli soldiers sit atop a Merkava tank stationed along the Israeli border with the Gaza Strip AFP/Getty Images Gaza crisis: heavy cross-border fire in pictures Black smoke rises as an Israeli airstrike hits a residential building in Gaza City AP Gaza crisis: heavy cross-border fire in pictures Palestinians look out of their house that was damaged in an Israeli air strike REUTERS Gaza crisis: heavy cross-border fire in pictures Palestinians hold placards and the Palestinian flag during a protest in solidarity with Gaza, in the West Bank city of Hebron EPA Gaza crisis: heavy cross-border fire in pictures An Israeli policeman inspects the damage in a building caused a day earlier by a rocket fired from the Gaza Strip, in the southern Israeli town of Ashkelon AFP/Getty Images Gaza crisis: heavy cross-border fire in pictures A Palestinian boy inspects the rubble of a destroyed residential building after Israeli air strike in Gaza City EPA Gaza crisis: heavy cross-border fire in pictures A man stands inside a house damaged by a rocket fired from the Gaza Strip overnight, in the Israeli city of Ashkelon November 13, 2018. REUTERS/Ronen Zvulun TPX IMAGES OF THE DAY RONEN ZVULUN REUTERS Gaza crisis: heavy cross-border fire in pictures Palestinians survey a destroyed residential building hit by Israeli airstrikes, in Gaza City, Tuesday, Nov. 13, 2018. (AP Photo/Hatem Moussa) Hatem Moussa AP

“The security of the country is above politics,” he added.

The Israeli leader is not out of the woods yet though, as he will struggle to rule the country with such a razor-thin majority. He still could face a vote of no confidence in the Knesset even if his main coalition partners stick by him.

The current crisis was triggered last Wednesday when defence minister Avigdor Lieberman resigned and abandoned the coalition over an Egypt-brokered ceasefire deal with Hamas, the militant group that runs Gaza.

With the five seats of Lieberman’s Yisrael Beiteinu party out of the coalition, Netanyahu was left clinging onto power with just 61 of the 120-seat Knesset prompting speculation early elections had become inevitable, at a time when the prime minister’s popularity was at an all-time low.

Elections are not due until November 2019.

Southern Israel residents protest against the government’s lack of action in Gaza (Reuters) (REUTERS/ Amir Cohen)

Mr Netanyahu had also come under fire from Israeli citizens living along the border with Gaza who were fed up of being pummelled by a barrage of rockets and called for tougher action including airstrikes on Hamas positions in the besieged strip.

Last week Gaza militants fired 460 rockets over the period of 24 hours, the heaviest bombardment since the 2014 war. The cross-border fire was launched in retaliation for a botched Israeli intelligence raid into southern Gaza which ended in a firefight that left seven Palestinians, including Hamas commanders, and an Israeli lieutenant colonel dead.

The Israeli army said they had attacked over 150 targets in Gaza with airstrikes.