Israeli Prime Minister-designate Tzipi Livni yesterday made a significant step forward in her cabinet-making efforts after securing a partnership with the country's second largest party Labor.

Following some 17 hours of intensive negotiations, representatives from Livni's ruling Kadima party and the Labor Party finally hammered out and inked a preliminary coalition deal shortly before the Sukkot festival began on Monday evening, local daily The Jerusalem Post reported.

Another daily Ha'aretz earlier reported that Livni and Labor Chairman Ehud Barak signed an agreement to bring Labor into the Livni-led coalition, but later revised its wording.

Discussions will continue on a number of issues that remain unresolved, said The Jerusalem Post, adding that Livni and Barak would sign a final version of the coalition agreement after the week-long holiday.

According to the draft agreement, Barak will assume a newly-established post of "senior deputy prime minister," according to the report.

Livni said last month that Barak would become a "real partner" if he joins in her administration.

Meanwhile, local news service Ynet reported that Barak will have greater influence upon cabinet affairs and issues concerning Syria and the Palestinian National Authority.

One of his associates was quoted as saying that "the summary draft, according to which cabinet decisions will not be made without the support and ratification of Barak, is dramatic."

Livni, the would-be second woman premier in Israel's history, has about a month to cobble together a government within the 42-day time limit.

Following the Labor track, she is expected to speed up talks with Shas, the third largest party and a former coalition partner, and some other parties to complete her mission.