Israel's attorney general today dropped a corruption case against Mr Ariel Sharon.
The decision ends months of uncertainty over the prime minister's political future and boosts chances for a withdrawal from the Gaza Strip in 2005.
Attorney General Mr Meni Mazuz said he is not indicting Mr Sharon on bribe-taking charges because of lack of evidence. Mr Mazuz informed Mr Sharon of the decision by phone before holding a news conference.
The decision clears the way for Mr Sharon to court the opposition Labour Party, which has said it would only consider joining the government if the prime minister is cleared of bribe-taking allegations.
Mr Sharon needs Labour to restore the parliamentary majority he lost as a result of the dismissal or defection of Cabinet hard-liners opposed to a Gaza withdrawal.
He wants to remove Israeli soldiers and settlers from Gaza by the end of 2005.