Related: Israel's Olmert Vows to Quit If Indicted

Israeli legislators from opposition and coalition parties on Friday called for the resignation of Prime Minister Ehud Olmert suspected of illegally receiving hundreds of thousands of dollars from an American businessman.

While Labor Party officials said the party would remain in the coalition until a final decision is made on whether to serve an indictment against the prime minister, its Secretary-General Eitan Cabel said his party needed to reconsider its position in the coalition in light of the revelations.

"I do not see how Olmert can continue to lead the government in the current situation," Cabel told Israel Radio on Friday.

Member of Knesset (parliament) Limor Livnat of Likud also told the radio that Olmert was not fit to carry on serving as prime minister.

"The Kadima government is up to its neck in routine criminal investigations and new elections must be held within 90 days," she was quoted as saying.

National Union-National Religious Party's Aryeh Eldad said " Israel cannot allow bribe-takers to lead it... and it cannot allow these people to lead it into political adventures in order to escape punishment."

Chairman of Israeli left-wing party Meretz, Zehava Gal-On, cynically said that "Olmert, like Olmert, continues to shirk responsibility and blame others."

The prime minister is suspected of illegally receiving hundreds of thousands dollars from American businessman and fund-raiser, Moshe Talansky, during tenures as Jerusalem mayor and as minister of industry and trade in Ariel Sharon's government.

On Thursday night, Olmert denied that he accepted bribes, announcing that he would only resign if he were indicted.

Olmert made the statement in an impromptu press conference in Jerusalem, shortly after the Tel Aviv Magistrates Court's decision to revise the comprehensive gag order placed on the investigation against him.

"I never took bribes, I never took a penny for myself," Olmert said. "If Attorney General Menachem Mazuz decides to file an indictment against me, I shall resign immediately, even though I am not required to do so by law."

A police source said the funds in question were "very large," and were allegedly received over an extensive period of time "both directly and indirectly." Hundreds of thousands of dollars are believed to be involved.