Israeli PM accused of massive corruption

Mr Olmert, 62, denied the allegations - which were revealed after the justice ministry lifted a gag-order in the case - but said he would resign if he is charged.

Mr Olmert admitted he had received "financial contributions" for various election campaigns from Jewish-American businessman Morris Talansky but insisted they were not illegal.

Mr Olmert has insisted he will continue his duties as prime minister, but in a rare step he cancelled all interviews he traditionally grants local media ahead of Israel's anniversary celebrations.