Mr Olmert said negotiations with the Palestinians would continue

Yuval Diskin, head of security service Shin Bet, told the cabinet there was a plan to ambush the convoy in August.

But before the attack could be carried out, Palestinian forces had arrested three plotters and the Israeli forces another two, he said.

Mr Olmert met Palestinian President Mahmoud Abbas on 6 August as planned.

Palestinian officials say the three suspects they detained had only talked of attacking Mr Olmert, but did not act on their talk and were released on 25 September.

After hearing of the alleged plot in the Sunday cabinet meeting, Mr Olmert complained of the suspects' release but said negotiations with the Palestinians would continue.

Mr Abbas and Mr Olmert have been meeting regularly ahead of a US conference on Palestinian statehood later this year.