Israel's prime minister has notified the country's president that he has succeeded in forming a government.

Benjamin Netanyahu presented the lineup to President Shimon Peres on Saturday, a day after a coalition deal was signed ending weeks of deadlock.

Netanyahu says this is a decisive year for the economy, security and promoting peace.

The coalition will be sworn in Monday, two days before President Barack Obama visits.

Along with Netanyahu's faction, the government comprises Yesh Atid, which has vowed to help Israel's middle class and end draft exemptions for ultra-Orthodox Jews; the Jewish Home party linked to the settlement movement; and Hatnua, which is committed to reaching a peace agreement with the Palestinians.

It is the first government in a decade without ultra-Orthodox parties.