With 60% of votes counted, Benjamin Netanyahu's Likud party has 21.4% and Gadi Eisenkot's Yashar has 16.2%, according to official election data.
The count released on Wednesday morning from Israel's Central Elections Committee does not indicate how many seats each party will win in the parliament.
With Arab parties' strong showing in the election and the possible implications of that in forming a new government, Israelis are facing a debate as strong as their morning coffee.
An analysis in the left-leaning Haaretz news outlet indicated an important moment for any political grouping that considers itself democratic.