After 30 years as a member of Shas and 13 of them as its chairman, MK Eli Yishai is expected to leave the ultra-Orthodox Sephardi party and form a new religious party. Yishai's decision is said to be the product of the feud between him and party Chairman Aryeh Deri, which Shas insiders described as beyond repair. Efforts by several Shas MKs, as well as rabbis serving on the Council of Sages, to facilitate a reconciliation between the two have proven futile, as both men have set what sources privy to the move called "impossible conditions." Deri reportedly wants Yishai to seek his permission before any interaction with the media, and has demands that Yishai confirm, in writing, that any insubordination on his part would result in his immediate dismissal from the party. Yishai, for his part, seeks to expand his authority within the party, as well as formulate Shas' Knesset list in a manner that would see his supporters and Deri's supporters slated alternately. A meeting between Deri and Yishai set for later this week, in an effort to prevent a split that may impeded the party's chances in the 2015 elections, has been canceled by order of the Council of Sages, which has informed Deri its rabbis would deal with the crisis from now on. Party sources said the council's decision has made Yishai's exit inevitable. Yishai met Friday with Rabbi Aharon Leib Shteinman, leader of the Lithuanian ultra-Orthodox community, as well as with Rabbi Meir Mazuz, who serves on the Council of Sages, ahead of making his final decision. "This is a regrettable situation. Eli Yishai is an asset for Shas and he should have been treated as such," a senior Shas member told Channel 2 Saturday. "It's a sad day when Shas prefers placing a convicted felon like Deri at its helm, over an ethical figure like Yishai. How are we supposed to explain this to our voters-" An associate of Yishai's said, "Deri sought to have him bound and gagged -- that's no way to work. Yishai wants unity and peace in the party, but the other side is making no effort. There's been no serious attempt by Deri to resolve the issue, not even a phone call, just a vague promise for the No. 2 slot and the position of a senior minister. In a party like Shas, that means nothing. It's a joke." Officially, Deri said he was waiting for Yishai's final decision on his future on the party, but behind closed doors, Shas' chairman told associates, "I've said my piece. I offered [Yishai] what I could because [party] unity is in our interest. He has rights, even though he's caused us some damage over the past year and a half. All he's been doing in undermining us, but the Sephardi sector doesn't like squabbles and I want to promote unity in the party." An associate of Deri's told Channel 10, "Yishai has made his bed and now he must lie in it. He refused Deri's offer for the No. 2 slot, and he has defied the Council of Sages." A Shas insider told Israel Hayom that barring a last-minute surprise, Yishai would leave Shas and form a new party "that would unite all the factions of Israeli Judaism." Yishai is said to be seeking rabbinical support for the new party, which would reportedly seek to represent the Ashkenazi, Sephardi and national-religious sectors. The possibility that Yishai's future party would partner with United Torah Judaism has been introduced, as has the possibility that contrary to reports, Yishai may choose to exit politics altogether at this time. Still, political sources hedged that Yishai will most likely forge a political partnership with Housing and Construction Minister Uri Ariel, who is said to be mulling a split from Habayit Hayehudi. Should Ariel and Yishai split from their parties and join forces, Habayit Hayehudi MK Yoni Chetboun would likely join them. "The main option now is running with former Habayit Hayehudi MKs, lead by Uri Ariel," a close associate of Yishai's said. "If they decide to stay with [Habayit Hayehudi leader Naftali] Bennett, is would be an 'Anyone but Deri' party. A new Sephardi list like that could win at least four Knesset seats. Shas is aware of that, which is why it hasn't ousted Yishai." Meanwhile, efforts within Habayit Hayehudi to prevent Ariel from leaving the party over his ideological disagreements with Bennett, are said to be in full swing. Ariel, whose Tkuma party merged with the National Religious party to form Habayit Hayehudi, has demanded the latter secure six of its projected 15 Knesset seats for Tkuma MKs, including the No. 2 slot for Ariel. Bennett and Ariel are scheduled to meet later on Sunday, to further discuss the issue. Over the weekend, Habayit Hayehudi MKs signed a letter, issued by Bennett, urging Ariel's faction to remain within the party. Chetboun refused to sign the letter, saying the move was "meant to force Ariel's hand." Also over the weekend, Tkuma MK Eli Ben-Dahan left the faction to officially join Habayit Hayehudi. Dahan plans to vie for a place on the party's Knesset list in its primaries, set for mid-January. On Sunday, Dani Dayan, former chairman of the Yesha Council, which serves as the umbrella organization of Israeli communities in Judea and Samaria, announced he was joining Habayit Hayehudi. Dayan called the move "a natural choice."