Mr Ehud Barak conceded defeat to right-wing challenger Mr Ariel Sharon in Israel's prime ministerial election today.
"A short while ago I telephoned member of parliament Ariel Sharon and congratulated him on his election", Mr Barak told supporters.
Mr Sharon is on his way to win Israel's prime ministerial election by a landslide, according to exit polls released by Israel's two main television channels after polling stations closed.
At 9.30 p.m. Irish time, with 10.1 per cent of the vote counted Mr Sharon was leading by 52.1 per cent to Mr Barak's 47.8 per cent.
Supporters at Mr Sharon's campaign headquarters in Tel Aviv erupted in cheers when the first exit polls were announced. In contrast, activists at Mr Barak's headquarters wept and hugged each other for comfort after the exit polls were announced.
Final unofficial results were expected by 2.00 a.m. on Wednesday (0000 GMT).
Mr Barak had portrayed the election as a choice between war and peace, against the backdrop of a four-month-old Palestinian uprising against Israeli occupation.
Mr Sharon playing a potent security card, pledged not to negotiate peace with the Palestinians until the current wave of violence stopped.
Victory by Mr Sharon, who led Israel's disastrous 1982 invasion of Lebanon, will cap a remarkable comeback since he was forced to quit as defence chief in 1983 over the massacre by Lebanese militiamen of hundreds of Palestinian refugees during the Israeli invasion of Lebanon.
He has said his first order of business as prime minister will be to try to form a national unity government, which would include Mr Barak.
Reuters