Israeli PM rules out talks with Syria

"As long as Syria continues to support terrorism, there is no basis for negotiations," Olmert said.

"When Syria stops support for terror, when it stops giving missiles to terror organisations, then we will be happy to negotiate with them," he said.

The premier was speaking one day after Israel announced that Foreign Minister Tzipi Livni had set up a ministerial working group on Syria, seen in the local media as a first step towards the possible renewal of peace talks.

The regime in Damascus is repeatedly accused by Israel and Washington of sponsoring "terrorism" and of being a key supporter of Lebanese Shia militia Hezbollah, which the Jewish state failed to destroy during its war in Lebanon.

"We should not forget that thousands of rockets," fired by Hezbollah militiamen at Israel during the month-long Lebanon offensive "came from Syria," Olmert said.

Earlier in the day, Deputy Prime Minister Shimon Peres made a similar statement.