Israel's parliament has voted to dissolve, setting the date for early elections as January 22, Prime Minister Binyamin Netanyahu said on Tuesday.

The Knesset’s dissolution was approved by 100 votes to none after a debate lasting eight hours.

Netanyahu said last week that he would seek new elections, months ahead of the scheduled October 2013 poll, due to the parliament’s failure to agree a new budget.

"I'm asking to hold elections on Tuesday, January 22, 2013," Netanyahu told the house at the start of the debate.

Likud-leader Netanyahu and his coalition of right-wing parties are expected to win easily amid the current tensions.

"In less than 100 days, the people of Israel will decide who will lead them in the face of the greatest security challenges which we have known since the founding of the state; who will lead them in the face of the toughest economic crisis the world has known in the past 80 years," he said.