The Jewish Home party approved on Monday to run as a joint list with the radical-right Otzama Yehudit party.
Jewish Home head and Education Minister Rafi Peretz was authorized by the party to oversee all negotiations needed for further alignments until party slates close for the March general vote on January 16.
Peretz was given the authorization due to Transportation Minister Bezalel Smotrich and his National Union faction's expected alignment, requiring further deliberations in the coming days.
Clashes between party activists supportive of the initiative and those opposing it broke out during the rally.
Otzma Yehudit welcomed Jewish Home's decision and called for Smotrich and his National Union party to also join the shared list and bring "victory to the right-wing bloc."
Attempts were made in the past to join Otzama Yehudit to the Jewish Home list, especially by Prime Minister Benjamin Netanyahu before the April 2019 elections.
Since 2013, Otzma Yehudit has repeatedly failed to garner enough support from voters to pass the electoral threshold – with several of its party candidates disqualified by either the Central Elections Committee or High Court of Justice from running in the past two elections for inciting racism and violence against Arabs.
Earlier on Monday, the New Right party, headed by Defense Minister Naftali Bennett and Ayelet Shaked, announced it will run as an independent list in the upcoming elections, as "the party of the ideological and liberal right."
"This is the only opportunity for the right-wing bloc to achieve a 61-seat majority," read a party statement.