The cabinet on Sunday approved the proposal by Yisrael Beitenu's leader, MK Avigdor Lieberman, to change the system of governance in Israel from a parliamentary to a presidential system.

The bill was passed at the weekly cabinet meeting by a single vote, as 12 ministers voted in favor and 11 voted against it, Army Radio reported.

The bill will now undergo the legislative procedure in the Knesset enjoying the government's support.

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According to Army Radio, Foreign Minister Tzipi Livni agreed to back the bill after making sure it would be presented to the Knesset in concurrence with Kadima's bill on changing Israel's government system.

Earlier on Sunday, Prime Minister Ehud Olmert told Kadima and Pensioners Party ministers that Lieberman's bill will be submitted at the Knesset along a similar bill by Kadima, Army Radio reported.

The ministers of Shas and Labor are strongly opposed to the change and voted against the proposal.

Last week Lieberman and Kadima withdrew their bills on the same subject before they reached a vote at the Knesset for fear they would not be able to secure a majority vote.

Shas chairman and Industry and Trade Minister Eli Yishai said that "it is necessary to stabilize the system [of governance] but it should be done properly through the coordination of all parties."

The cabinet will discuss a petition filed by Minister without Portfolio Eitan Cabel (Labor), who challenged the possibility that a decision on the Lieberman proposal can be made on a single vote.

The current situation in the cabinet is that all Kadima ministers will support the Lieberman proposal, but the Shas and Labor ministers will oppose it. That leaves the two ministers from the Pensioners' Party, Rafi Eitan, minister for pensioners' affairs in the Prime Minister's Office, and Health Minister Yacov Ben-Yizri, who will tip the balance.

Prime Minister Ehud Olmert is keen on having the Lieberman proposal approved by the cabinet so that it can be brought to the Knesset for a preliminary reading. Olmert is aware that Lieberman will be unlikely to join the coalition unless his proposal is approved.

Last week, Lieberman decided not to bring his bill before the Knesset for a preliminary reading, fearing that he would not manage to harness sufficient votes to push his proposal forward. According to Knesset regulations, if a bill is turned down by the Knesset plenum during a preliminary reading, that piece of legislation cannot be brought before the parliament for six months.