Netanyahu and Gantz agreed last month to form a unity government that was supposed to be sworn in last Thursday.
But at the last moments, Netanyahu asked for a delay of three days so that he could complete the distribution of cabinet portfolios within his Likud party.
The new government is due to be sworn in this afternoon.
Under the agreement, the unity government will last for a period of three years. During the first eighteen months of Netanyahu, who has been in power since 2009 without interruption, he will become prime minister, after which Netanyahu will step down in favor of his former opponent, Benny Gantz.
The new government will include between 34-36 ministers representing the various political spectra, from the left-wing Labor Party and from the "blue and white" centrist coalition, Likud and hard-line Jewish parties.