Israel's newly-elected Prime Minister, Ehud Barak, has named the former head of Israel's secret service, Mossad, to a top position as his chief of staff.

Retired Major General Danny Yatom resigned as the head of Mossad after the botched attempt to assassinate a senior Hamas official, Khalid Meshal, in Jordan in 1997.

Mr Yatom's appointment is likely to raise eyebrows given his background. The failed assassination attempt was one of the most embarrassing moments for Israel's spy agency.

Danny Yatom was at the centre of the Meshal scandal

The incident threatened to sour Israel's relations with Jordan and the peace process.

Aides to Ehud Barak say Mr Yatom will now play a key role in coordinating defence matters relating to the peace process.

Mr Barak - a former head of the armed forces - has decided to surround himself with close allies in the military. As well as Mr Yatom, another retired general, Zvi Stauber, who also has a background in intelligence, will become Mr Barak's political adviser.

Hopes for unification

Ehud Barak has made few public statements since his election as prime minister two weeks ago, treading carefully whilst he carries out negotiations to form a coalition government.

But he has sent out one clear signal. He does not want to be seen as a left-winger where the peace process is concerned, but as a unifying figure and a nationalist with a centrist agenda.

He carried out his election campaign in a focused, strategic style with the help of former military colleagues and it proved to be effective.