'Lack of evidence' in Sharon case

Mr Sharon has denied any wrongdoing

Israeli investigators think there may not be enough evidence to charge Prime Minister Ariel Sharon over a bribery scandal, Israeli TV has reported.

The TV station said it was quoting an interim report from a panel appointed by the Attorney General Menachem Mazuz.

A final decision on whether to prosecute is up to Mr Mazuz.

The allegations relate to business deals said to involve the Sharon family. Ariel Sharon denies all the allegations against him.

The BBC's Matthew Price in Jerusalem says although this is just a preliminary report, it may give an indication of the way the investigation is progressing.

Greek island

Israeli political commentators say the prime minister would have little choice but to step down if he were charged over the scandal, though there is no legal obligation for him to do so.

In TV interviews on Tuesday, Mr Sharon declared, "I am completely innocent," but he declined to discuss the case further.

The allegations are that Mr Sharon's son Gilad accepted hundreds of thousands of dollars from Israeli businessman David Appel, who wanted to develop a Greek island into a tourist resort.

The project was never completed, but the allegations are that Mr Sharon, who was foreign minister at the time, used his position to try to win the Greek government's approval for the plan.

Mr Appel has already been indicted in the case, but experts say the case against Mr Sharon should be airtight before he is charged - as it could lead to the toppling of a prime minister.