The government officially revoked the nomination of Maj. Gen. Yoav Galant to the role of Israel Defense Forces chief of staff on Sunday.
Galant's nomination had been postponed afte he was accused of improperly seizing public land near his home on Moshav Amikam.
Earlier on Sunday, Galant petitioned the High Court of Justice demanding that his case be reviewed by the Turkel Committee, which vets senior civil service appointments. In the petition, he also demanded that discussion over the new chief of staff nominee, Maj. Gen. Benny Gantz, be postponed until his case was reviewed.
The court rejected Galant's request that debate over the new IDF chief be delayed.
Later on in the day, the government cabinet voted to formally withdraw Galant's name as a nominee for the position.
His petition to the High Court will be examined later in the week.
The petition came as a surprise on Sunday, as the cabinet was getting ready to discuss Gantz, Barak's new nomination for the role.
Netanyahu, in announcing Gantz's appointment, said that he understood where Galant was coming from.
"He went through something that is not simple and I understand the enormity of his disappointment," Netanyahu said.
"The IDF's stability is especially important in light of the turmoil in the region," Netanyahu added to explain why he was nominating Gantz for the position of IDF chief.
Galant made clear over the weekend that he would not give up on the role of IDF chief and insists that his name be included on the new list of candidates.
He claims that his appointment was unjustly canceled and that he had not been given sufficient time to respond to the accusations directed against him.
The decision to cancel Galant's nomination came after Attorney General Yehuda Weinstein announced he would not be able to defend the appointment before the High Court of Justice.
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