The mandate given by President Reuven Rivlin to Netanyahu to form a government expired on Tuesday at midnight with no breakthrough in coalition talks.
Lapid, who received the backing of 45 lawmakers, now seems to be the most likely candidate to get a chance to form a government.
Netanyahu has struggled to secure a parliamentary majority since March 23 - when elections ended in deadlock for the fourth consecutive time in the past two years.
Israel's President Reuven Rivlin also voiced doubt that any candidate can forge a majority coalition.
Israel's longest-serving prime minister faces charges of accepting bribes, fraud and breach of trust in three long-running corruption cases.
PM Netanyahu's office said in a statement that 'because of difficulties in coordinating his flight in Jordanian airspace the visit was postponed' until further notice.
Netanyahu is locked in a tight race against a field of challengers in Israel's fourth election in two years, and is sure to use the trip -- 12 days before Israelis go to the polls -- to his own politi
The hulking Israeli-owned MV Helios Ray suffered a mysterious explosion in the Gulf of Oman on Friday and came to Dubai's port for repairs on Sunday.
In a post on Twitter, Netanyahu said he had spoken with Biden for roughly an hour in 'friendly and warm' terms, affirming the US-Israel alliance and discussing issues related to Iran.
This appearance was Israeli PM's second in court since his corruption trial began in May last year.
Netanyahu was indicted last year for fraud, breach of trust and accepting bribes in three separate cases.
The protesters say Netanyahu cannot serve as prime minister when he is on trial for charges of fraud, breach of trust and accepting bribes in three separate cases.
On Friday, the ICC ruled that it has jurisdiction over the situation in the occupied Palestinian territories, paving the way for the tribunal to open a war crimes investigation.
In his conversation with Netanyahu over phone, Modi assured him that India accords the highest importance to the safety and security of Israeli diplomats and premises.
While most countries consider all Israeli settlements in the West Bank illegal, Israel broadly divides them into two categories: government-recognised settlements and so-called wildcat outposts.