Jan 5, 2007, 8:03 GMT
Tel Aviv - Israeli Prime Minister Ehud Olmert denied in a statement issued overnight that he intended to sack his defence minister Amir Peretz.
Two leading Israeli news channels reported Thursday night that Olmert planned to offer Peretz another portfolio post in return for his voluntary resignation, but would sack the defence minister if he did not agree to step down.
'The Prime Minister's Bureau ... wishes to clarify that contrary to television reports, Prime Minister Ehud Olmert has not decided to dismiss Defence Minister Amir Peretz or to transfer him to another post,' said the overnight statement.
'As far as the Prime Minister's Bureau is concerned, the issue is not on the agenda.'
Simmering tensions between Olmert and Peretz in the past months have reached a zenith in recent weeks.
The defence minister has criticized Olmert's policy of restraint against rocket attacks from the Gaza Strip.
The Labour Party head and former union leader, who unlike many former Israeli defence ministers did not begin his post after an an advanced military career, has himself come under heavy fire for his lack of experience in defence issues. Both he and Olmert have also come under fire for their performance during Israel's month-long war with the Lebanese Hezbollah movement this summer.
Israeli media have reported that Peretz lacks the authority of other defence ministers and that military chiefs at times ignore his opinion.
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