Israel’s general election looked too close to call with almost all votes counted this morning.
Prime Minister Benjamin Netanyahu's Likud party and the centrist Blue and White alliance were projected to each win 35 seats.
With 97 percent of the votes counted, neither of the candidates' parties had captured a ruling majority.
The outlook meant Mr Netanyahu was in a strong position to form a coalition government with other right-wing factions.
The closely contested race was widely seen in Israel as a referendum on Mr Netanyahu's character in the face of corruption allegations.
He faces possible indictment in three graft cases, and has denied wrongdoing in all of them.
The projected 35 seats for veteran right-wing leader's Likud party would mean a five-seat gain for Likud.
"It is a night of colossal victory," the 69-year-old Netanyahu told cheering supporters in a late-night speech at Likud headquarters, while cautioning that a "long night and possibly day" lay ahead awaiting official results.
Fireworks flared behind him as his wife Sara applauded and kissed him. "He's a magician," the crowd chanted.
Final results were expected by Friday.
If he wins, Mr Netanyahu, 69, will be on track to be the longest-serving prime minister in Israel's 71-year history.
Mr Netanyahu, in power consecutively since 2009, said he had already begun talks with prospective coalition allies.
Rival Mr Gantz, 59, earlier had also claimed victory, citing preliminary exit polls that were published soon after voting ended on Tuesday showed his party had won more seats than Likud.
"We are the victors," said Mr Gantz, a former military chief fighting his first election. "We want to thank Benjamin Netanyahu for his service to the nation."
During the campaign, the rival parties accused each other of corruption, fostering bigotry and being soft on security.
