Exit polls in Israel's election suggest Prime Minister Benjamin Netanyahu's Likud party and the Zionist Union are neck-and-neck
Two polls project the parties have 27 seats each, while a third says Likud has one more seat than its rival, led by Yitzhak Herzog
Mr Netanyahu hails the outcome as a "great victory" for Likud, but Mr Herzog insists "everything is open"
Both would need the support of other parties in the 120-seat Knesset to form a coalition government
The exit polls suggest that the Joint List, an alliance of Arab-Israeli parties, has come third (All times in GMT)
Likud candidate Sharren Haskel has played down talk of a grand coalition between her party and the Zionist Union. She tells the BBC: "I think there is too much distance between the two parties and the voters who voted to those two parties expect different results, and so I think it would be very disappointing to our voters if we do sit in a unity government."
We are expecting Mr Netanyahu to arrive at the Likud party's election headquarters any time now.
A new exit poll by Israel's Channel One TV network, external indicates the far-right Yachad party has enough votes to pass the threshold to get into parliament - at least 3.25%, or four seats. It could prove to be an important ally to Mr Netanyahu in the forming of a coalition.
Mr Herzog concludes by telling his supporters: "There will be no decisions tonight, so you can go to sleep."
Mr Herzog predicts a "political turnover in Israel". "This result allows us to become a ruling party. Everything is open," he says. Mr Herzog adds that he has "spoken to all the heads of the relevant parties" and that while the final results are not yet known, "I will do all that I can in order to create a real socially-minded government for Israel."
Zionist Union leader Yitzhak Herzog is addressing supporters at its election headquarters in Tel Aviv. "We have achieved an unbelievable achievement today," he says.
Michael Shuval
Producer, BBC Arabic
tweets, external: Netanyahu must choose: Stable right wing coalition w no intl legitimacy or unstable moderate gov that could prevent further isolation.
The official results are coming in - slowly. The Central Elections Committee is publishing results in real-time on its website, external.
Image source, EPAUS state department spokeswoman Jen Psaki responded to the comment by saying: "We're always concerned, broadly speaking, about any statements that may be aimed at marginalising certain communities."
Earlier on Tuesday, Mr Netanyahu attracted criticism after suggesting his hopes of victory were under threat due to the number of votes being cast by Israeli Arabs, who make up around 20% of the population. "The right-wing government is in danger," he wrote on Facebook. "Arab voters are going to vote in droves. Left-wing NGOs are bringing them in buses." This, he warned, "grants excessive power to the radical" Joint Arab List.
The Zionist Union has responded to Mr Netanyahu's statement by stressing that "everything is possible until the real results are in", the Haaretz newspaper reports. The Labour-Hatnua alliance has formed a negotiating team to help Yitzhak Herzog form a government, while the left-wing Meretz party, which the polls suggest has won five seats, has called on Herzog not to form a grand coalition with Mr Netanyahu, it adds.
Image source, ReutersA lot of people are happy with Mr Netanyahu's declaration of victory following the publication of exit polls indicating his Likud party is tied with the Zionist Union.
Image source, FacebookThe militant Palestinian Islamist movement Hamas, which dominates the Gaza Strip and fought a 50-day war with Israel last summer, has dismissed the results of the election as irrelevant. "We do not differentiate between Israeli parties as they all agree on the denial of our rights and planning further aggression," their spokesman Sami Abu Zuhri told the BBC.
On the eve of the election, Mr Netanyahu reiterated a pledge to prevent the establishment of a Palestinian state if he was re-elected.
The Palestinians have vowed to step up their campaign for international recognition of Palestinian statehood following the publication of the exit polls in Israel. Chief negotiator Saeb Erekat told the AFP news agency: "It is clear that Prime Minister Benjamin Netanyahu will form the next government, so we say clearly that we will go to the International Criminal Court in The Hague and we will speed up, pursue and intensify" all diplomatic efforts.
Dan Williams of the Reuters news agency tweets, external: Palestinian flag waved as the Joint Arab List celebrates its third-place win in Israel's election - @eran_singer @chicomenashe
Image source, AFPThe Haaretz newspaper quotes one Likud party official, external as saying Mr Netanyahu will seek to form a grand coalition with Mr Herzog. The official explains: "Netanyahu doesn't want a unity government, but sometimes you find yourself with no choice."
Political analyst and pollster Mitchell Barak tells the BBC's Lyse Doucet that Zionist Union leader Yitzhak Herzog "was a successful lawyer, he was a minister, he sat in the cabinet. He's from one of the most well known Israeli families - an elitist - almost like the Israeli version of the Kennedys". He adds: "His father, the president, was born in Belfast, and he certainly on St Patrick's Day has the luck of the Irish."
The Arab Joint List look almost certain to finish third in the election. Their leader, Ayman Odeh, has been speaking in the last few minutes. The Times of Israel quotes him as saying, external: "We are in a historic moment. We have the highest Arab voting rates since 1999. We will block Netanyahu from forming the government."
Image source, Getty ImagesTurnout was below 2013 levels until 20:00 local time. Some large numbers appear to have turned out in the last few hours of voting.