Veteran politician also says nation will not accept new prime minister or cabinet as legitimate
Premier has been vulnerable to attacks – both domestically and externally - since coming to power in 2018, says report
Netanyahu also said he would retain the defence ministry portfolio at least for now
Much of what governments do and opposition groups propose is calculated for electoral advantage
Voters in the world's third-largest economy could go to the polls as soon as October 22
The outgoing government would be the shortest-living in Iceland's history