Israeli Prime Minister Ehud Olmert said Wednesday evening that he will continue to function as Prime Minister and will not step down despite ongoing bribery investigation against him.

Olmert made the remarks during a meeting with heads of southern Israeli communities and towns near the Hamas-ruled Gaza Strip, reported local daily Yedioth Ahronoth.

"There are those who believe that the launching of any investigation demands a resignation, but I don't adhere to this notion and I will not step down," Olmert was quoted as saying.

Earlier on Wednesday, Olmert discussed with a senior member of his centrist Kadima Party over Jewish American businessman Morris Talansky's deposition, according to the report.

Talansky told a preliminary hearing at Jerusalem District Courton Tuesday that he gave Olmert envelopes of his own cash amounting to no less than 150,000 US dollars over a period of 15 years.

The testimony is part of an investigation into Olmert, who is suspected of illegally receiving hundreds of thousands of dollars from Talansky.

Olmert said it is inconceivable that a prime minister will be condemned based on a single testimony, adding that he will issue a statement in the next few days.

"I have plenty to say and I have kept quiet because of the investigation...I will not do anything to harm the party," he added.

At a press conference in Jerusalem on Wednesday afternoon, Israeli Defense Minister and Labor Party Chairman Ehud Barak called on Olmert to temporarily step aside over corruption allegations or resign.

"In the wake of the current situation and considering the challenges Israel faces, including Hamas, Hezbollah, Syria, Iran, the captured (Israeli) soldiers and the peace process, the Prime Minister cannot simultaneously lead the government and deal with his personal affairs," Barak said.

Out of consideration for the good of Israel and the accepted norms, Olmert must detach himself from the day-to-day leadership of the Jewish state, he urged.

The Defense Minister warned that if Olmert does not quit, Labor Party will move towards early elections.

(Xinhua News Agency May 29, 2008)