Speaking at the start of the first cabinet meeting after the Knesset elections, Olmert announced that from now on the transit government would act "as required by the new political reality".
"I believe this is the natural and called for thing to do," he added.
The Likud and Kadima parties are preparing for a week of fervent talks ahead of the president decision whom to task with forming the new government.
Likud officials on Saturday night increased their pressure on Kadima. "(Likud Chairman Benjamin) Netanyahu will be willing to accommodate Kadima in order to include it in a unity government led by him, but first (Kadima Chairwoman Tzipi) Livni must set petty politics aside and place the country's interests first," one of them said.
On the backdrop of the political tangle, the Kadima faction will meet Sunday afternoon for its first meeting since the elections. Its members are expected to discuss the political situation and the possibility of sitting in the opposition, but will not vote on the issue.
In the meantime, it appears that most Kadima faction members support Livni's stance that the party should not be part of a coalition led by Netanyahu.