TEL AVIV, Jan 21: Israeli prosecutors are considering whether to indict Prime Minister Ariel Sharon after a court charged a businessman on Wednesday with trying to bribe him in the 1990s, a justice ministry source said.

The source said prosecutors would decide within months whether to charge Mr Sharon - a move that would almost certainly force from office the right-wing former general who has won popularity for tough measures against the Palestinians.

An Israeli court indicted property developer David Appel earlier in the day on charges of trying to bribe Mr Sharon when he was foreign minister in the late 1990s, sparking opposition calls for his resignation.

Ariel Sharon, 75, has denied any wrongdoing in a string of corruption scandals that have failed to seriously dent his popularity. But mounting legal troubles could threaten his support and weaken his hand in seeking a peace arrangement with Palestinians. Mr Sharon, if indicted, would likely be charged along with his son, Gilad, and Deputy Prime Minister Ehud Olmert, a close ally in the ruling Likud party.

"The state attorney's office will take from a few weeks to a few months to decide whether or not charges will be brought against Sharon, Olmert and Gilad on the Greek island affair," the justice ministry source said, referring to a real estate deal.

Analysts said that while the indictment against Mr Appel would tarnish the premier's image, it posed no direct threat to his power because prosecutors had not presented any evidence showing he knowingly accepted money for political favours.

A senior political source close to Ariel Sharon said: "He's not going to resign. There is no charge against him." Senior legal analyst for Israel Radio, Moshe Negbi, said the chances of an indictment against Mr Sharon were 50 per cent. Justice Minister Yosef Lapid said the prime minister would have to "draw conclusions" if charged. -Reuters