Prime Minister Ehud Olmert's rivals jostled for Israel's leadership after his decision to resign but aides said he could remain in office long enough to forge a statehood deal with the Palestinians.

Dogged by corruption scandals, Mr Olmert thrust Israeli politics into turmoil on Wednesday by announcing that he would step down after a September 17 vote within his centrist Kadima party to choose a new leader.

But it could take his successor months to cobble together a new coalition, leaving Mr Olmert in the role of caretaker Prime Minister, possibly until next year if new elections, favoured by right-wing opposition leader Benjamin Netanyahu, are called.

An official close to Mr Olmert, speaking on condition of anonymity, said Mr Olmert intended to try to reach agreement with Palestinian President Mahmoud Abbas "during the time he has left", either in his current role or as caretaker leader.

Analysts nonetheless doubt Mr Olmert will have the political strength to make commitments, either in final-status talks with Mr Abbas or Israel's Turkish-moderated negotiations with Syria.

Four Kadima ministers, including Foreign Minister Tzipi Livni and Transport Minister Shaul Mofaz, have launched campaigns to replace Mr Olmert in the September 17 vote.

Polls have shown Ms Livni, Israel's chief negotiator with the Palestinians, ahead within Kadima.

But Mr Netanyahu's Likud party could try to thwart Kadima's plans to form the next Israeli government by mustering a majority in Parliament, either to form its own coalition or to move up elections scheduled for 2010.

Opinion polls suggest Mr Netanyahu, a leading critic of Mr Olmert's peace moves with the Palestinians and Syria, would win an early parliamentary election.

"This government has reached an end and it doesn't matter who heads Kadima. They are all partners in this government's total failure," Mr Netanyahu told Israel Radio.

"National responsibility requires a return to the people and new elections."

Mr Olmert has faced weeks of public pressure to resign over probes into suspicions he took bribes from an American businessman and made duplicate claims for travel expenses.

Police said the Prime Minister, who has denied any wrongdoing, would be questioned for the fourth time today.

Factbox

• Mr Olmert and Palestinian President Mahmoud Abbas relaunched Israeli-Palestinian peace talks at a US-backed conference in November after a seven-year hiatus and agreed to try to reach an agreement on Palestinian statehood by the end of this year. The talks have made little progress. In May, Mr Olmert disclosed that indirect talks with Syria, mediated by Turkey, were under way.

• Mr Olmert has been dogged by financial scandals. US businessman Morris Talansky testified in an Israeli court in May that he had given Mr Olmert €96,000 in cash over a 15-year period. Both men have denied any wrongdoing. Mr Olmert has said the funds were legitimate contributions to election campaigns he waged before becoming Prime Minister in 2006, but said he would resign if indicted.

• Mr Olmert served as mayor of Jerusalem from 1993 to 2003 and used the position to champion building Jewish enclaves in Arab parts of the city. In younger days he spent his mandatory military service as a reporter due to health problems, seeing combat only from afar. He entered parliament aged just 28 and, in his 30s, briefly re-enlisted to take an officers' course. He has also had a legal career.

• He joined former Prime Minister Ariel Sharon in leaving the right-wing Likud party in 2005 to form Kadima and became leader when Mr Sharon was felled by a stroke in January 2006. Kadima won elections two months later. He refused to resign after a scathing official report on the conduct of the 2006 war against Lebanese Hezbollah guerillas.

• Mr Olmert faces police probes in other corruption affairs in which he denies wrongdoing. They relate to his conduct before becoming Prime Minister and include accusations he dispensed favours in return for a discount on the 2004 purchase price of a Jerusalem home. He also faces allegations that as trade minister in 2003 he appointed cronies to a state business authority. In November, police concluded there was insufficient evidence to pursue complaints over his role in the sale of state-owned Bank Leumi when serving as finance minister.

• A keen runner, sports fan and fitness fanatic, he is now 62. His approval ratings got a boost in October when he announced he had early-stage prostate cancer but would stay on in office. He plans to have surgery to remove the growth. Mr Olmert and his artist wife Aliza have four children.