Israel appeared to be hurtling towards early elections on Wednesday after the defence minister resigned and accused Benjamin Netanyahu of “surrendering to terror” by agreeing to a ceasefire with Hamas.

The resignation of Avigdor Lieberman, a hawkish member of Mr Netanyahu’s coalition, leaves the government with just a one-seat majority that could collapse if other parties also decide to quit.

Mr Netanyahu’s allies said he planned to take over the defence ministry himself, meaning he would simultaneously serve as Israel’s prime minister, defence minister, foreign minister and health minister.

But Naftali Bennett, the leader of the Right-wing Jewish Home party, demanded the defence portfolio for himself and threatened to bring down the government if he was not given the post.

The day of political drama began when Mr Lieberman resigned on Wednesday afternoon over Mr Netanyahu's decision decision to accept a ceasefire with Hamas to end 24 hours of intense fighting.

Mr Lieberman said the Israeli government should confront the Islamist militant group more forcefully even if it meant suffering more rocket fire into Israeli cities.