The coalition has been at loggerheads since ultra-Orthodox parties said they would not support next year's budget unless a law is passed to exempt religious students from military service.
Shaked adds PM Netanyahu can also prevent elections, even if Lieberman resigns, as he remains with a coalition of 61, a one-seat majority.
Israel's parliament was expected to take up key measures later in the day in what could signal whether Netanyahu's right-wing coalition will survive for now or head towards elections that could be held as early as June. Netanyahu would go on to study at MIT, serve in the Israeli army, and become Israel's longest-serving prime minister. "Freedom, innovation, informality", Netanyahu said.
On Monday, the ministerial committee gave approval to the bill.
On Sunday, Netanyahu met with Deputy Health Minister Yaakov Litzman (United Torah Judaism), and ultimately succeeded in winning haredi backing for a compromise arrangement, under which the government would approve the draft bill in the Ministerial Committee for Legislation and bring the bill up in the Knesset plenum for the first of three readings.
And in the latest sign that, after loudly criticizing the Iran deal as one of the "worst deal ever", the Trump administration is planning to move ahead with its plans to reimpose sanctions, Axios reports that Trump told Israeli President Benjamin Netanyahu that he will demand "significant changes" to the deal in his negotiations over possible modifications as the different parties try to come to a "last chance" compromise to keep it intact.
Lieberman slammed the bill.
At the same time, Finance Minister Moshe Kahlon wants the budget approved before parliament's current session ends this week and has threatened to quit if it does not happen. Recent opinion polls show public support for Netanyahu is still strong.
Lieberman later told lawmakers from his Yisrael Beitenu party that he would continue to oppose the legislation, but would remain in the government for now.
Although Lieberman has enjoyed a healthy working relationship with Netanyahu and his similarly conservative Likud party, a schism has persistently existed in the coalition between secular parties like Yisrael Beiteinu and orthodox parties like The Jewish Home, Shas and UTJ.
The 68-year-old premier could soon face charges in at least two separate corruption affairs, while investigations are continuing into two others.
Israeli Prime Minister Benjamin Netanyahu opened up about spending part of his childhood in America during an in-depth interview with LevinTV host Mark Levin on his new Fox News program, "Life, Liberty & Levin".
The police has already recommended indicting Netanyahu in two bribery cases, but the final decision on indictment must be made by the attorney general.