Naftali Bennett has won a Knesset confidence vote on Sunday night to emerge Israel’s new Prime Minister.

Mr Bennett, a former aide to newly ousted Israel Prime Minister Benjamin Netanyahu, with a vote lead, narrowly won with 60 votes to 59, Aljazeera reports.

The result means Mr Netanyahu, the country’s longest serving leader, relinquishes his record-breaking 12-year foot hold of power.

The announcement of the result attracted jubilations in the Mr Bennett’s camp with his party, the ultranationalist party becoming the first Arab party to serve in government, along with its diverse coalition ever recorded in Israel.

The centrist opposition leader Yair Lapid will form the new government while Bennett will be premier for two years before Mr Lapid assumes the role.

The new government will for the first time include 21 per cent minority comprised of Palestinian citizens of Israel.

Mr Bennett assumed leadership of the Yamina party which had just seven seats in the country’s parliament while Netanyahu’s Likud, in the last election in March, won 30 seats.

Mr Bennett now becomes Israel’s 13th prime minister while Mr Lapid will be the 14th.