Attorney General Avichai Mandelblit tells the High Court of Justice he sees no legal impediment to have Prime Minister Benjamin Netanyahu tasked with forming the government.
The court is set to issue a ruling on a petition on the matter next week.
A High Court decision passed in the 1990s bars ministers from serving if they are under criminal indictment, but the law and previous rulings say nothing about a prime minister. The petition urges judges to rule that an indicted politician cannot serve as prime minister.
Netanyahu is indicted in three corruption cases, including bribery in one of them.
Dozens of protesters rallied Thursday outside the High Court against petitions to disqualify Benjamin Netanyahu from serving as prime minister while facing criminal charges.
Around 100 people, many waving Israeli flags and maintaining mandatory social distancing, staged a demonstration against what they called court intervention in the democratic process.
The court is scheduled on Sunday to hear petitions from several non-profit advocacy groups against a coalition government deal reached by Netanyahu and Blue & White head Benny Gantz.