Netanyahu was among the 120 members of the Knesset, or parliament, sworn in during an official ceremony.
Support from smaller right-wing parties allied to Likud led to a majority of 65 parliament members supporting Netanyahu to continue on as premier.
But Netanyahu also faces the prospect of becoming the first sitting prime minister to be indicted.
The attorney general has announced he intends to indict him for bribery, fraud and breach of trust pending a hearing.
He is not required to resign if indicted, only if convicted with all appeals exhausted.
Netanyahu’s outgoing government was considered the most right-wing in Israel’s history and his next is expected to be at least as hawkish, if not more so.