Tel Aviv  - Israeli prime minister-designate Benjamin Netanyahu of the Likud party signed his first coalition agreement overnight with the ultranationalist Israel Beiteinu party of Avigdor Lieberman, who would be foreign minister, Israel Radio reported.

The pact was signed five weeks after Israeli elections were held. Netanyahu, of the hardline but mainstream Likud, continued to hold coalition negotiations with other parties.

Tel Aviv  - Outgoing Israeli Prime Minister Ehud Olmert postponed a cabinet meeting on a prisoner exchange with Hamas until Tuesday because of continuing negotiations in Cairo.

"It should be emphasized that as of yet, there is no sign that indicates a result in any particular direction in the negotiations," a statement from Olmert said Monday, the day the meeting was scheduled.

The prime minister is seeking to obtain the release of kidnapped Israeli soldier Gilad Shalit before he leaves office this week.

Tel Aviv - Israel's rightwing Likud party and the conservative Kadima party have reopened talks on forming a coalition government which were broken off two weeks ago, broadcaster Israel Radio reported Saturday.

According to the report, the Kadima would enter a government with Likud only if the latter agreed to a rotation of the prime minister post between Likud leader Benjamin Netanyahu and Kadima leader Tzipi Livni.

Tel Aviv - President Barack Obama will not cut the billions of dollars in military aid promised to Israel, a senior US administration official said Wednesday.

The 30 billion dollars in aid promised to Israel over the next decade will not be be harmed by the world financial crisis, the official told Israel Radio. He spoke on condition of anonymity.

The Obama Administration however expects the next Israeli government of Prime Minister-designate Benjamin Netanyahu to continue peace negotiations with the Palestinians, he said.

Tel Aviv  - A Palestinian family who lost 29 members in Israel's recent offensive in Gaza filed a law suit Tuesday against the Israeli leadership, demanding some 200 million dollars in compensation, Israeli media reported.

The Samouni family, from the southern Gaza City suburb of Zaytoun, filed the suit at a court in northern Israel against outgoing Israeli premier Ehud Olmert, Defence Minister Ehud Barak and Army Chief of Staff Gabi Ashkenazi.

Tel Aviv - Israeli legislators demanded Wednesday that military chief of staff Gabi Ashkenazi fire Israel Navy head Eliezer Marom, who finds himself in hot water after visiting a Tel Aviv strip club earlier this week.

Lieutenant-General Ashkenazi has already reprimanded Rear-Admiral Marom, who apologized for the visit and admitted that it "did not accord with what is expected of an officer of his rank," Israeli media reported.