PM Ehud Olmert of Israel has handed in his resignation to President Shimon Peres. Tonight the president will consult with the heads of the 4 largest knesset factions - kadima, labour, likud and shas- before deciding who to appoint with responsibility for forming the next government.

Tzipi Livni won the Israel election and now will need to form a new cabinet in six week. In the meanwhile Olmert will keep the post of the PM for until the formation of the new cabinet in Israel.

President Nicolas Sarkozy of France, during his first trip to Damascus, encouraged Syria to pursue face-to-face peace talks with Israel.

The police of Israel are expected to recommend on Sunday indicting the prime minister Ehud Olmert in three separate affairs: Talansky, Rishon Tours and the Investment Center.

An Israeli diplomatic source says Israel is interested in continuing talks with Syria and that the legal issue surrounding the role of Yoram Turbowitz as negotatior will be resolved in the coming days. Turbovitz agreed to continue in his role as negotiator despite his resignation as chief of the Prime Minister's Office.

Al-Siyassa Kuwaiti daily quoted sources in Washington as saying that the date of an Israeli and American attack on Lebanon and Iran is approaching.

PM Olmert to step down as head of the Kadima party and Prime Minister.

An Israeli soldier is seen shooting an arrested and bound Palestinian in the leg with a plastic bullet, in a video released by an Israeli human rights group.

By all accounts, the Israeli-Syrian indirect negotiations through Turkish mediation are going well, and the fact that a fourth round of talks is scheduled for the end of July suggests that both sides expect to make further progress. The reports from Damascus and Ankara, however, indicating that Syria will not enter into direct negotiations with Israel before the advent of new American administration show an obstructive apprehension on the part of the Syrian government.

PM's lawyers to cross-examine Talansky as the Police in Israel will question PM Ehud Olmert.

The Turkish Foreign Ministry in Ankara says the last round of indirect talks between Israel and Syria will take place no later than two weeks from now, after which direct negotiations are to begin.

President Nicolas Sarkozy of France says as long as the Middle East conflict is unresolved, it will continue to fuel world terror.