Prime Minister Ehud Olmert called Foreign Minister Tzipi Livni in the wee hours of the morning to congratulate her on her victory in the Kadima leadership elections. He said he would meet with her on Thursday and promised to cooperate as she tries to form a new coalition.

The Prime Minister said he is not bitter at having to resign but added he feels "pain" over his leaving his position after three years. Investigations on corruption forced him to quit although no decision has been made on whether to indict him.

His resignation could go into effect as early as Sunday, but he also can decide to remain in power until it is clear if the Prime Minister-elect can form a government