He quit this task on January 5, 1978, because of differences with the cabinet over peace proposals with Egypt. Katz was then active with the Tehiya party for some years and later with Herut – The National Movement after it split away from the ruling Likud.
In January 1978, he quit his work because of conflicts with the government over peace negotiations with Egypt.  Katz subsequently joined the Tehiya party and later the Herut – The National Movement following its separation from the Likud.