Israeli police searched the Jerusalem Municipality on Monday and confiscated documents related to the new investigation against Prime Minister Ehud Olmert, local daily Yedioth Ahronoth reported on its website.

Five months earlier police searched several municipal offices, including the Jerusalem Municipality, in connection with other investigations against Olmert, the newspaper added.

Meanwhile, businessman Morris Talansky was summoned to the National Fraud Unit's headquarters for questioning on Monday afternoon in relation to his suspected involvement in the bribery affair Olmert has recently been implicated in.

Police investigators said Talansky was being questioned under caution. At the present time, he is suspected of having raised the funds which were subsequently transferred to Olmert through illegal channels.

Several hours prior to the second round of interrogation, a former senior police figure, Yaakov Borovsky, who is familiar with the details of the corruption charges against Olmert, said the current affair would likely result in an indictment against the prime minister.

According to Borovsky, the latest probe against Olmert stems from other affairs on which the prime minister was investigated by the state comptroller.

"These materials have been gathered by the State Comptroller's Office and handed over to the police and the State Prosecutor's Office...the police is acting with determination, professionalism and courage in this case," he was quoted by Yedioth Ahronoth as saying.

Olmert denied Thursday that he took bribes from Talansky during a campaign, and announced he would only resign if indicted.