Israel's ruling Kadima party will narrowly edge out its main rival in elections likely to be held early next year, polls in two Israeli dailies found Monday, a day after Kadima leader Tzipi Livni recommended President Shimon Peres call for an early poll.

Livni announced late Sunday afternoon that she had failed to form a new coalition to replace that headed by Ehud Olmert, and Peres is now left with the option of either entrusting the task to another legislator or calling elections.

The survey published in the Yediot Ahronot daily showed Kadima winning 29 mandates in the 120-seat Knesset, compared to 26 for the hawkish Likud party headed by former premier Benjamin Netanyahu.

The Labour Party, headed by another former prime minister, Ehud Barak, would win only 11 seats, while the ultra-Orthodox Shas party, whose refusal to join a Livni-led coalition precipitated the current political impasse, would win 8 seats.

The Kadima-Likud result, however, was within the polls' 4.5 per cent margin of error.

Another poll, in the Ma'ariv daily, gives Kadima 31 seats, compared to 29 for the Likud, 11 for the Labour Party, 11 for the ultra-nationalist Yisrael Beteinu party, and 8 for Shas.

The poll had a two-mandate margin of error, the daily said.

Kadima currently has 29 seats in the Knesset, the Likud 12, the Labour Party 19, and Shas 12.

President Shimon Peres tasked Livni on September 22 with forming a new coalition but despite energetic negotiations over 5 weeks, she was unable to put together a government.