"Everyone understands that Israel is in the midst of a governmental state of emergency which may result in economic and social collapse," Edelstein was quoted as saying on the Knesset website.
He noted that of special concern was the return of election slogans, "too quickly" after Israel has already held two inconclusive snap votes in six months.
"Therefore, I contacted the two major party leaders today and asked them to instruct the negotiating teams to meet with me here, tonight, in my office, for a final attempt to form a government and avoid elections. I am pleased to announce that my appeal has been positively met by the two leaders and tonight, the attempt to restore sanity to Israel will begin," Edelstein said.
Last Thursday, Israeli President Reuven Rivlin ordered the Knesset to form a coalition government within 21 days as Netanyahu and Gantz had failed to do so.
Under Israeli law, lawmakers have until 11 December to unite into a coalition under the parliamentarian who will then be announced prime minister. If that does not happen, Israel will convene an unprecedented third consecutive snap vote.
The first general election in April saw Netanyahu winning the vote but falling short of an outright majority to form a government. The second election in September had Gantz pull slightly ahead but again fail to secure a parliamentary majority.