Exit polls show Prime Minister Benjamin Netanyahu as the winner of Israel's election. Celebration at his party's headquarters. Seen here earlier in the day, Netanyahu's Likud party along with the ultra-nationalist Yiserael Beitenu still have the most seats in the 120-member assembly --- reportedly 31 seats ---down from the 42 they held in the previous parliament.

The centrist Yesh Atid party led by a former television talk show host came in second with 18 or 19 seats, a stunning result for a political newcomer.

The once dominant Labour party was projected to take third place with 17 seats.

Lawmaker Isaac Herzog says he thinks the left could form an alliance against Netanyahu's leadership.

SOUNDBITE: ISAAC HERZOG, ISRAELI LAWMAKER FROM LABOUR PARTY, SAYING:

I believe that right now we can be the center of a coalition with Yair Lapid, for a new government for Israel."

During his campaign, 63-year-old Netanyahu promised to focus on tackling Iran's nuclear ambitions, if he won.