Israel to drop charges against Netanyahu, radio reports

JERUSALEM (Reuters) -- Israel Radio said on Tuesday that Israel's attorney-general had decided to drop charges of corruption against former Prime Minister Benjamin Netanyahu.

A spokesman for the Justice Ministry said a decision had been taken but declined to confirm or deny that Netanyahu would be cleared.

Israel's Army Radio and Channel One Television also reported that Netanyahu would not be indicted.

Justice Ministry spokesman Ido Baum told Reuters that Attorney-General Elyakim Rubinstein would not make an official statement until Thursday, most likely.

"The attorneys have been notified that a decision has been taken, but the decision is not yet complete," Baum said.

Police recommended in March that Rubinstein file charges against Netanyahu, the former right-wing Likud party chief, for allegedly taking bribes and failing to return state property after leaving office.

The announcement will come at a crucial time for Prime Minister Ehud Barak, who is scrambling to rebuild a coalition and fighting for political survival while struggling to make peace with the Palestinians.

Opinion polls show Barak, the Labour Party leader, would run neck-and-neck in another face-off with Netanyahu, the man he ousted by a landslide in May 1999.

Following his loss, Netanyahu said he was taking a "time-out" from politics, but he has not discouraged media speculation that he plans to return.

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