The former Israeli prime minister, Mr Benjamin Netanyahu, who has been under investigation for suspected bribery-related and theft offences, is not to be prosecuted, Israeli television reported last night.
Mr Netanyahu, who resigned from the Knesset and took a self-imposed "time out" from politics after being heavily defeated by the Prime Minister, Mr Ehud Barak, in elections in May 1999, will now be free to mount a comeback.
The Attorney-General, Mr Elyakim Rubinstein, is expected to formally make public and explain his decision not to prosecute tomorrow. But Israel's Channel Two news last night reported that Mr Rubinstein considered there was "insufficient evidence" for a prosecution, and that Mrs Sara Netanyahu, the former prime minister's wife who has also been extensively questioned, will not face charges either.
Mr Rubinstein's decision was reportedly opposed by at least one of his senior justice ministry colleagues, who thought that a prosecution was merited, and the attorney general is apparently to issue a report highly critical of aspects of Mr Netanyahu's behaviour. This would be unlikely to worry Mr Netanyahu, who barely flinched when castigated by the legal authorities during his term as prime minister for briefly appointing one of his own party hacks as attorney general.
Mr and Mrs Netanyahu had been investigated for, among other things, allegedly seeking to have the state pay for domestic work done on their behalf, and for holding on to official gifts received from visiting dignitaries. The ex-prime minister always denied the allegations.
Colleagues say he has been planning a comeback, which could involve usurping Mr Ariel Sharon as leader of the opposition, but wanted to wait for the attorney general's ruling. Although he was defeated by a 12 per cent margin last year, some opinion polls now show him to be more popular than Mr Barak, who is trying hard to conclude a permanent peace deal with the Palestinians.
As head of a minority coalition, Mr Barak would be acutely vulnerable to a hardline opposition rejuvenated by the return of Mr Netanyahu.