The BBC's Jeremy Bowen: Retaliation, not withdrawal, will be on the agenda

He was speaking after cutting short a trip to the UK following the killing of two soldiers in the Israeli-occupied zone in southern Lebanon.

Mr Netanyahu had talks at Tel Aviv airport with Defence Minister Yitzhak Mordechai, and said the security cabinet would meet on Sunday to discuss the situation.

Two Israeli soldiers were killed and two others were wounded after an armoured vehicle detonated a roadside bomb. Another charge went off when a second vehicle turned back to help.

Mr Netanyahu told Israel Radio: "The Lebanese Government certainly has the military capability to deploy in the south and to take the necessary steps.

"We are aware of the pressures being exerted on it, by Syria and also Iran, which also intervenes with Hezbollah. All this is well-known. But this doesn't excuse Lebanon from direct responsiblity for what is happening on its territory.''

The Hezbollah guerrilla group claimed responsibility for the attack, which it said "destroyed an Israeli tank and killed its crew".

Israeli planes retaliated with raids against targets just north of the zone.

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Seven Israelis have now been killed in southern Lebanon in less than two weeks.

Mr Netanyahu had been due to travel on to Spain before returning to Israel on Monday.

The BBC correspondent in Jerusalem, Lyse Doucet, says the prime minister's decision to return early reflects growing concern over the escalation of Hezbollah's operation.

Review of Lebanon policies

As the violence continues, Mr Netanyahu has been facing calls from both opposition parties and within his government for an Israeli withdrawal from Lebanon.

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The attack happened only a day after two other Israeli soldiers were killed in a similar incident.

Speaking in London on Thursday, Mr Netanyahu said he would reassess tactics on his country's border with Lebanon on his return to Israel.

"As soon as we find a way to withdraw our forces without abandoning the need and the ability to defend our northern villages and towns, and without abandoning our allies in the south ... we shall withdraw from Lebanon," he said.

Israeli radio reported that Israeli Defence Forces' Northern Command has begun to examine what can be done to reduce the number of casualties in southern Lebanon.

Israeli troops have occupied a self-proclaimed "security zone" 10 - 15 km wide in Lebanese territory, across the Israeli border since 1985.

The Israelis say the purpose is to keep Hezbollah guerrillas - supported by Iran and Syria - away from Israeli border villages.