Opposition and coalition leaders called on embattled Israeli Prime Minister Ehud Olmert to resign after bribery allegations against him surfaced.

Israeli police have been investigating Olmert but only recently revealed he is suspected of illegally receiving thousands of dollars from a U.S. businessman and fundraiser, Haaretz reported Friday.

While some Labor Party officials said the would remain in the coalition with Olmert's Kadima party until prosecutors determine whether to indict Olmert, Labor Secretary-General Eitan Cabel said his party must review its position, The Jerusalem Post reported.

I do not see how Olmert can continue to lead the government in the current situation, Cabel said.

Some Kadima members said it would be difficult for them to support the prime minister but party leaders haven't issued an official position, Haaretz said.

Knesset Member Yoel Hasson, of Kadima, defended Olmert's actions, noting the prime minister offered his explanation of events after law enforcement officials outlined the investigation against him.

In Israel, we don't bring down a government because of accusations or investigations, Hasson said.

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