* New coalition to be in place before Obama visit * Yair Lapid seen likely to become new finance minister * Upstart parties displace ultra-Orthodox factions By Ori Lewis JERUSALEM, March 10 (Reuters) - Israeli Prime Minister Benjamin Netanyahu convened his outgoing cabinet on Sunday for what he said was probably the last time, signalling he was close to completing the formation of a new government.

Israeli Prime Minister Benjamin Netanyahu said Monday he was days away from forging a "strong and stable" coalition, but quipped to a US group that his nation's parliamentary democracy was not worthy of emulation. Netanyahu has struggled to stitch together a working coalition after reportedly abandoning his efforts to form partnerships with the ultra-orthodox parties, his traditional allies. On Saturday he was given two more weeks to form a new government, four weeks after initially being tasked to do so by President Shimon Peres.

Israeli Prime Minister Benjamin Netanyahu said Monday that diplomacy has so far failed to deter Iran from pursuing its nuclear program, warning the Islamic republic was getting closer to crossing a crucial "red line." "Iran enriches more and more uranium, it installs faster and faster centrifuges," and it is "running out the clock" on diplomatic efforts to prevent it from obtaining a nuclear capability, Netanyahu said.

Israeli Prime Minister Benjamin Netanyahu said Monday that diplomacy has so far failed to deter Iran from pursuing its nuclear program, warning it was getting closer to crossing a crucial "red line." "Iran is getting closer to that red line, and it is putting itself in that position to cross it," Netanyahu told the largest American pro-Israel lobby via satellite, referring to the point at which Israel believes Iran would be able to build a nuclear weapon. mlm/sst