Source at the Israeli Labor Party reported on Tuesday that talks between the Labor party head Amir Peretz and Kadima head Ehud Olmert had reached an agreement on the new government portfolios.

The source stated that Peretz would take the defense ministry, the portfolio of the education ministry will be headed by Yuli Tamir, and the justice ministry would be headed by Isaac Herzog, all are Labor part members; plus four another portfolios.

Peretz announced that the agreement reached with Olmert and the meetings with him surmised Labor part members.

Senior party member said that they were offended by the conducts of Peretz “who sent them to do the jobs of explaining the social coalition while he was already hatching plans with Kadima”.

Other members said that Peretz showed maturity “by deciding to take a straight path”.  They added that this agreement gave the Labor party a senior partnership in the government.

Peretz held a meeting with his senior party members at the Labor party headquarters in Tel Aviv; he told them that if he had done otherwise, Labor party members would have bashed him.
Meanwhile, the Israeli President Moshe Katsav gave on Tuesday a strong indication that the acting Israeli Prime Minister, Ehud Olmert will be forming the coming Israeli government.  

The statements of Olmert came as he was talking to reporters in Jerusalem after Peretz called him and expressed the Labor party support for Olmert.

Katsav is slated to meet with other parties on Wednesday; he will be holding talks with representatives of United Torah Judaism (UTJ).

UTJ officials have already twice canceled the meeting on the grounds that they needed to consult with their Torah sages.

Also, Olmert said on Monday that he wanted his government to include both Labor and Avigdor Lieberman (Yisrael Beiteinu Party).