His party, Likud, won a surprise victory despite being behind in the polls four days ago. Latest figures show it has a quarter of the seats in the parliament meaning Mr Netanyahu will now be tasked with forming a coalition government.
Speaking after the victory, he said: "Against all odds - a great victory for Likud.
"I've spoken with all parties leaders with the national camp. I've asked them to join me and form a government in Israel without delay.
"Reality doesn't take a break."
Clinching a fourth term at the Knesset, if he does form the coalition he would be set to become Israel's longest-serving prime minster.
Whilst winning support in Israel, his reign as prime minister has led to difficulties with the international community.
Speaking about the country's future, Dr Harry Hagopian, international lawyer and church consultant on Middle East issues said: "We are going to witness very rocky times.
"A lot of commentators have said occupation of Palestine will continue, democracy has died out... and we've lost in our relations with the United States.
"There is a lot riding on this election and if you come from a camp which believes the Palestinians should have a sovereign state if you come from a camp like social issues and housing...if you come from a camp that thinks relations with America should be better...then I think this Prime Minister has - at the moment - burned those cards."
It's understood the process of forming the coalition government will take around two or three weeks.
Almost three quarters of the population turned out to vote in the election, which has seen the number of Arab and female MPs increase.
Listen to Harry Hagopian speaking with Premier's Marcus Jones: