Israeli Prime Minister Ehud Olmert has struck a last-minute deal with the Labour party to save his coalition and Barak ups pressure on Israeli PM ...
Call for Israel PM to stand down ...
Israeli PM grilled a second time over bribery allegations ...
Olmert to face second interrogation ... avert fresh elections.
Labour's leader, Defence Minister Ehud Barak, has agreed not to support an opposition bill to dissolve parliament.
In return, Mr Olmert has pledged to hold elections for a new leader of his Kadima party by September.
Mr Olmert is under investigation for alleged corruption and Mr Barak has recently called for his resignation.
Mr Olmert denies wrongdoing and has not been charged. He has also said he will not resign unless he is indicted.
However, as of now, it is highly likely that Mr Olmert will lose the leadership vote, and Israel will have a new prime minister come September, says the BBC's Tim Franks in Jerusalem.
Uncertainty
Israel Radio said the Likud party was withdrawing the bill rather than risk seeing it voted down, which under parliamentary procedure would mean a delay on when it could be brought to the Knesset again.
Mr Olmert had warned Mr Barak that he would fire Labour ministers if they joined forces with Likud leader Binyamin Netanyahu to pass the bill.
Both Mr Olmert and Mr Barak trail hawkish ex-Prime Minister Benjamin Netanyahu in opinion polls.
Mr Olmert's hopes for survival now rest in large part on his lawyers, in three weeks' time, cross-examining the man who claims to have funnelled $150,000 (Ј76,000) to Mr Olmert in improper campaign financing.
In the meantime, as long as Israeli politics remain turbulent, so uncertainty will continue to cloud Israel's relationships with the Palestinians and the rest of the region.
(BBC)
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