Jerusalem - Israel's ruling Kadima party submitted a bill Monday to dissolve the parliament and hold early elections within three months, a day after party leader Tzipi Livni announced she was giving up efforts to form a new government.

Livni was tasked on September 22 by President Shimon Peres with forming a new government to replace that of Ehud Olmert, who has resigned to fight corruption allegations.

The 50-year-old foreign minister, who was chosen to replace Olmert as the head of Kadima in September 17 primaries, decided to recommend early elections after the ultra-Orthodox Shas party decided against joining her government.

Jerusalem - Israel Foreign Minister Tzipi Livni postponed by several hours a scheduled meeting with President Shimon Peres Sunday, fueling speculation of last minute negotiations to resolve an impasse which had prevented the formation of a new coalition government.

Livni, who had been scheduled to arrive at Peres' Jerusalem residence at 2 pm, (1200 GMT) received a telephone call from Knesset Speaker Dalia Itzik asking her to wait a few hours, according to media reports because Peres had decided to mediate between Livni and her prospective coalition partners.

Livni had been expected to recommend that Peres call for new elections as she had failed to form a new governing coalition. She was now slated to meet Peres at 1500 GMT.

Jerusalem - Israel Foreign Minister Tzipi Livni postponed by several hours a scheduled meeting with President Shimon Peres Sunday in which she was expected to recommend new elections as she had failed to form a new governing coalition.

Livni had been slated to meet Peres at 2 pm (1200 GMT) but at the last minute received a phone call from Knesset Speaker Dalia Itzik, who was meeting the president and who asked her to delay her visit to Peres' official residence, Israel Radio reported.

It was unclear whether Peres or Itzik were attempting to intervene and conduct last-minute mediation between Livni and prospective coalition partners who had already refused to join a government headed by her.

Jerusalem- Early elections in Israel are becoming increasingly likely, after the ultra-Orthodox Shas party announced Friday that it would not join a coalition led by Foreign Minister Tzipi Livni.

Shas' decision, which came after Livni issued an ultimatum late Thursday, dealt a serious blow to her efforts to form a government by early next week.

Jerusalem - The ultra-Orthodox Shas party decided Friday morning not to join a coalition led by Israeli Foreign Minister Tzipi Livni, dealing a serious blow to her efforts to form the government by early next week, Israel Radio reported.

The party's Council of Torah Sages, headed by Shas spiritual leader Rabbi Ovadia Yoseph, decided in a conference call Friday morning to reject the final offer she had made for raising child allowances for large families, a top priority for the party.

Jerusalem  - A Palestinian stabbed to death an elderly Israeli passerby Thursday, and wounded a police officer, in the Jewish settlement of Gilo, south of Jerusalem, police said.

The Palestinian was stopped by two police officers and asked to identify himself, but he drew a knife and stabbed one of the officers.

The officer then shot the stabber, but he escaped and while running away fatally stabbed a second Israeli, an 86-year-old civilian whom he ran into, a witness who chased after the attacker and overpowered him said.