A key governing partner of Israeli Prime Minister Benjamin Netanyahu said Wednesday it is quitting the government, leaving him with a minority in parliament.

The Shas ultra-Orthodox party said it was leaving over disagreements surrounding a proposed law meant to grant wide military draft exemptions to its constituents.

A second ultra-Orthodox party United Torah Judaism (UTJ), quit earlier this week over the same issue.

Leading a minority government would make governing a challenge for Netanyahu. But Shas said it wouldn't work to undermine the coalition once outside it and could vote with it on some laws. It also wouldn't support its collapse.

The political turmoil comes as Israel and Hamas are negotiating on a US-backed ceasefire proposal for Gaza.

While the shakeup in Netanyahu's government won't necessarily derail the talks, the Israeli leader will be more susceptible to the demands of his far-right coalition partners, who oppose ending the 21-month war while Hamas remains intact.

Netanyahu remains in office for now, but his political grip has significantly weakened.