The Prime Minister's Office said Thursday evening that "contrary to reports, the prime minister did not decide to dismiss the defense minister or transfer him to another post."
"The subject is not on the agenda," officials said.
Following a report on Channel 2 that Prime Minister Ehud Olmert decided to dismiss Defense Minister Amir Peretz, senior officials from the offices of the two leaders talked and Olmert's associates pledged to issue an official statement denying the report.
The PM published the statement just before leaving Sharm el-Sheikh in Sinai, where he met with Egyptian President Hosni Mubarak.
Earlier, the political echelons raged over the reports, and Labor Party Faction Chairman Yoram Marciano said, "The news item that was published is another ugly spin from Olmert's media advisors who are trying to draw attention away from the corruption they are involved in."
Labor Party Minister Eitan Cabel also responded, saying, "The Labor Party won't allow the ousting of any of its ministers, even if there are differences of opinion within the party about the primaries."
Government Secretary Yisrael Maimon said Thursday to Ynet, "The prime minister didn't make any decision to dismiss the defense minister. This issue isn't on the agenda."
According to him, "We have no idea where this information came from. The report that was published is incorrect."
He also said, "Everyone in the political system feels free to feel around and to speak in the name of the prime minister. We are very cautious about this issue."
According to Channel 2's report, Prime Minister Ehud Olmert decided to dismiss Defense Minister Amir Peretz from his post because, among other things, he came to the conclusion that his standing in the public eye is negatively influenced by Peretz's appointment.
It was also reported that Olmert decided that if the defense minister doesn't step down himself, he will be fired.
Recently, it was reported in Ynet that some of Olmert's advisors recommended that he dismiss the defense minister.
"Publicly admit that you were mistaken in your appointment of Peretz to the post, and explain that national responsibility obligates you to replace Peretz with another person much more befitting of this office. Don't be afraid to admit a mistake," said the advisors to Olmert.
"The public is prepared to hear an admission of a mistake, and public opinion will change."
Sources close to Olmert said that the prime minister is still not convinced that he must make this move, or he is afraid to do it, because "he understands that he will have to take this step in the not-so-distant future."
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