Israel will hold a snap election in March after parliament failed on Tuesday to meet a deadline to pass a budget, triggering a ballot presenting new challenges for Prime Minister Benjamin Netanyahu.

Campaigning in Israel's fourth parliamentary election in two years gets underway with Netanyahu facing public anger over his handling of the coronavirus pandemic and while he is engaged in a corruption trial, the first against an Israeli prime minister.

Israel's longest-serving leader will also have to contend with a new rival from the right, Gideon Saar, a defector from Netanyahu's Likud party. 

An opinion poll on Israel's Kan public TV on Tuesday showed Saar drawing even with the prime minister.

Netanyahu, who has denied any criminal wrongdoing, and the current defense minister, centrist politician Benny Gantz, established a unity government in May after three inconclusive elections held since April 2019.

But they have been locked in a dispute over passage of a national budget, key to implementing a deal in which Gantz was to have taken over from Netanyahu in November 2021. 

A new election means that "rotation" will never happen.

Some political analysts said Netanyahu had hoped to use the budget dispute to force an election that would get him out of the power-sharing deal with Gantz. 

But they said he had preferred a ballot in May or June, when a vaccination campaign now underway could bring him more voters.

Netanyahu will remain prime minister until a new government is formed after the March election. 

Now 71, he first served in the post from 1996 to 1999 and has held the office since 2009.