Former Israeli finance minister Benjamin Netanyahu has announced his intention to challenge Prime Minister Ariel Sharon for the leadership of the ruling Likud Party.
Israeli ex-finance minister Benjamin Netanyahu
The challenge is likely to come in a primary before the end of the year.
Mr Netanyahu will be the main candidate of Likud rightist hardliners in revolt over Mr Sharon's removal of settlers from Gaza and part of the West Bank under his plan to "disengage" from conflict with Palestinians.
"Likud needs leadership that will repair damage and bring victory," Mr Netanyahu told a news conference. "I believe I can do this and I will stand for the Likud leadership and the premiership."
Likud's central committee is expected to meet in late September to schedule a primary 60 days later, opening the way to a general election well before the due date in November 2006.
Most Israelis favoured the dismantling of all 21 settlements in occupied Gaza and four of 120 in the West Bank this month. Israeli rightists condemned the pullout as a gift to Palestinian militant violence and a betrayal of what they see as a Biblical Jewish birthright to Gaza and the West Bank.
Mr Sharon (77) won election in 2001 and was re-elected in 2003. He remains Israel's most popular and respected leader, according to opinion polls.
But Mr Netanyahu, who at 55 represents the future leadership of the party, won plaudits as finance minister for free-market reforms that revived Israel's economy. He is a former prime minister whose links with the United States are particularly strong.