Labour set to quit govt as Sharon mulls Likud split

With parliament due to be dissolved later this week, members of Labour's central committee were to meet in Tel Aviv to rubber stamp the party's decision to pull out of Sharon's governing coalition.

The decision to withdraw was made following this month's surprise election of Amir Peretz as Labour's new dovish leader -- a move which has propelled the country towards early general elections.

Labour's eight ministers and three deputy ministers have already signed their resignation letters which are due to be submitted Monday, and will come into effect 48 hours later.

As the country began gearing up for general elections, expected in February or March, Sunday's headlines were dominated by the speculation over Sharon's political future.

The hawk-turned-pragmatist Israeli leader is widely expected to make an historic break from the right-wing faction he helped found, but which has increasingly become an albatross around his neck.