Netanyahu's nationalist-religious coalition in January launched a campaign to overhaul Israel's judiciary, sparking unprecedented protests, sending the shekel down and stirring concern among allies for Israel's democratic health.
President Isaac Herzog did not provide details of the new compromise proposal, saying only that it provides the basis for immediate understandings that will keep Israel "a stable democracy."
Netanyahu says the judicial changes are meant to balance out branches of government by reining in a court that has become too interventionist.
Netanyahu, who is on trial for corruption charges he denies, has said that he has already scrapped some of the original judicial proposals while he works to reach agreements on reforms.
Successive surveys have shown the overhaul to be unpopular among Israelis and Netanyahu's coalition, which won a decisive victory in a November vote, losing an election were it to be held.
Persons:
Benjamin Netanyahu's, Israel, Isaac Herzog, Herzog, Herzog's, Netanyahu, Joe Biden, Maayan Lubell, William Maclean
Organizations:
Netanyahu's, Israel's, reining, Thomson
Locations:
JERUSALEM, Israel, Latrun