Israeli Defence Minister Ehud Barak threatened to topple the coalition government of Prime Minister Ehud Olmert if the Israeli leader does not step down to face corruption charges based on Morris Talansky's reports.

"Olmert cannot deal with the challenges Israel faces like Hamas, Hezbollah, Syria, Iran and the kidnapped soldiers, and run his personal affairs at the same time," Barak told the media on Wednesday.

"The Prime Minister must disengage himself from the day- to-day business of running the government. It does not matter which path he chooses suspension, a vacation, resignation, a leave of absence this is not for us to determine," he said.

Barak's threat has increased the growing pressure on Olmert to resign in the wake of a US businessman's court testimony that painted Olmert as a money-hungry politician with a love for luxury.

According to VOA News "Israeli prosecutors are investigating whether Mr. Olmert accepted illegal campaign contributions or bribes from U.S. businessman Morris Talansky.

"Talansky told a Jerusalem court Tuesday that he gave Mr. Olmert $150,000 in cash over a 15-year period. Talansky said he never expected or received any favors from Mr. Olmert.

"Mr. Olmert denies any wrongdoing."

Barak earlier during the day held consultations with senior party officials and also metOlmert himself at the end ofa cabinet meeting.

"Either Olmert suspends himself or the Labour Party must leave the government," senior Labour legislator Danny Yatom said.

Amid vociferous calls from the opposition to resign, two lawmakers, Amira Dotan and Ze'ev Elkin,from Olmert's own Kadima party alsodemanded his resignation.

Tal Silberstein, an Olmert adviser, told a radio on Wednesday that the premier had no intention of stepping aside.

"I can tell you, based on a recent conversation with him, that he has no intention of announcing that he is taking a leave of absence or declaring anything at this stage.Not as long as he is trying to prove his innocence," Silberstein said.