JERUSALEM (AP) -- In a frenzied last day of campaigning, Prime Minister Benjamin Netanyahu on Monday ruled out the establishment of a Palestinian state and vowed to keep building east Jerusalem settlements as he appealed to hard-line voters on the eve of Israel's closely contested general election.

The moderate opposition, meanwhile, announced a dramatic last-minute machination of its own, removing one of its two joint candidates for prime minister.

Netanyahu, who has governed for the past six years and has long been the most dominant personality in Israeli politics, has watched his standing plummet in recent weeks.

Recent opinion polls show his Likud Party lagging behind Isaac Herzog's Zionist Union. Herzog, who has vowed to revive peace efforts with the Palestinians, repair ties with the U.S. and reduce the growing gaps between rich and poor, confidently predicted an "upheaval" was imminent.

Late Monday night, it was announced that Herzog's main partner, former Foreign Minister Tzipi Livni, had given up an agreement to rotate the prime minister post with him if their alliance wins. It was widely thought that the unusual arrangement was driving away voters.

Tuesday's election caps an acrimonious three-month campaign that is widely seen as a referendum on Netanyahu.

While his comments Monday appeared to be election rhetoric, they nonetheless put him further at odds with the international community, boding poorly for already strained relations with the U.S. and other key allies if he wins a third consecutive term.

The hard-line leader has portrayed himself as the only politician capable of confronting Israel's numerous security challenges, while his opponents have focused on the country's high cost of living and presented Netanyahu as imperious and out of touch with the common man.

As Netanyahu's poll numbers have dropped in recent days, he has appeared increasingly desperate, stepping up his nationalistic rhetoric in a series of interviews to local media to appeal to his core base. Netanyahu has also complained of an international conspiracy to oust him, funded by wealthy foreigners who dislike him, and on Sunday night, he addressed an outdoor rally before tens of thousands of hard-line supporters in Tel Aviv.

The strategy is aimed at siphoning off voters from nationalistic rivals, but risks alienating centrist voters who are expected to determine the outcome of the race.

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