The BBC's Jeremy Bowen: "Some ministers want Israel to bomb Beirut"

Mr Netanyahu and his security cabinet discussed the issue throughout Sunday while families of soldiers stationed in southern Lebanon protested outside.

The meeting came after a spate of attacks by Hezbollah guerrillas, including the deaths of seven Israeli soldiers last week.

Speaking as he toured the border with Lebanon, the prime minister said that troops would remain as northern Israel was threatened by Hezbollah.

He pledged more attacks against terrorist forces seeking to kill or threaten Israelis.

Some members of his cabinet are reported to have recommended bombing the Lebanese capital Beirut.

"We have been in Lebanon for more than 20 years for one single reason," said Mr Netanyahu.

"There is no one in Lebanon who is prepared to control the soil of Lebanon and prevent it being used by terrorists to attack Israel."

Foreign Minister Ariel Sharon was reported before the cabinet meeting to be pushing for a withdrawal, backed with a clear-cut threat of harsh retaliation should Israeli forces or territory be subject to cross-border attacks.

Netanyahu: Pledge to protect villages

But the Defence Minister, Yitzhak Mordechai, and security chiefs were reported to favour maintaining troops in Lebanon while withdrawing from isolated outposts.

Israeli forces staged overnight artillery attacks on Hezbollah positions near the occupation zone.

Several warplanes struck suspected guerrilla strongholds just north of the border strip, an army spokesman said. There were no reports of casualties.

Israel has occupied a self-proclaimed 10-15km wide "security zone" in Lebanon since 1985 to protect border villages.

But while the security cabinet met, protesters and opposition figures stepped up their call for a complete withdrawal, arguing the policy had failed.

They said that the government's insistence on maintaining the security zone was wasting soldiers' lives.

Labour MP Yael Dayan said: "Let's protect our soldiers the way we know best.

"We are not protecting the north (of Israel) and we are not protecting the lives of our soldiers."

The head of the army, Lieutenant-General Shaul Mofaz, has responded to the campaign to bring troops home by saying Israel has faced worse dangers in the past.