Resignation will enable former MK Shuli Moalem to return to Knesset when it reconvenes on Monday; in six months Ayelet Shaked will resign and Bennett will return as MK.
Announcement follows criticism among ministers that ban on ascending Temple Mount applies only to Jewish representatives.
Over $100,000 was given for infrastructure in Negohot, which has no building permits.
'You can't be in the cabinet and in the opposition at the same time,' Netanyahu's aides say, after Bennett calls for a new settlement to be built after every terror attack.
Two more wounded after attacked on way to Western Wall; terrorist shot dead by security forces.
Israeli president said several weeks ago that he had not met with prime minister following 'differences' over foreign policy.
Rivlin tells coexistence event in Jerusalem that trust building between Israelis and Palestinians should take place in Knesset, media and public sphere.
Knesset panel approves calling up Border Police reservists amid escalating Jerusalem tensions and violence.
Candidate: 'Placing voting booths solely in Tel Aviv sends a problematic message both to Meretz members and to the public.'
Ya'alon says suspects not being identified to protect the sources; since attack that killed members of Dawabsheh family, three Jewish assailants have been detained.