Jerusalem  - Israeli Attorney-General Menahem Mazuz told former prime minister Ehud Olmert Sunday that he is considering indicting him on corruption charges, pending a hearing in which the ex-premier will be able to state his version of events, local media reported.

According to the allegations, when serving as trade and industry minister before he assumed the premiership, Olmert participated in an application before the ministry's Investment Centre to award a government grant to a factory endorsed by his former law partner.

State Comptroller Micha Lindenstrauss has already slammed Olmert for "conflict of interest" in the affair.

Olmert already faces indictment on two other charges. In what is known in Israel as the "money envelopes affair", he is accused of accepting hundreds of thousands of dollars, much of it in envelopes stuffed with cash, from Morris Talansky, a US businessman and fundraiser.

He is also suspected having multiple-billed travel expenses while serving in public office in the years before he was elected premier in March 2006.

Two other investigations against the former prime minister have been closed without recommendations he be indicted.

But public pressure over the investigations led Olmert to bow out of politics, and not run at the head of his Kadima party in the February 10 elections. dpa