Following GOC Northern Command Udi Adam's announcement of his planned resignation, MK Ami Ayalon (Labor) called Wednesday for Defense Minister Amir Peretz to do the same.

"Brigadier General Adam is not the only one responsible for the events of the war in Lebanon. There are those in the political echelon who are responsible, and I think Peretz needs to own up to this responsibility and resign," Ayalon said.

Ayalon, who is a former Israel Navy commander and former head of the Shin Bet security service, has recently challenged Peretz' leadership at the Labor Party and said he would run against him in the next party primaries.

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Later on Wednesday, Peretz said that he welcomes any challenge to his leadership of the Labor Party as part of a democratic procedure.

"I see nothing wrong with the calls [for party primaries]," he told Channel 2 television.

"We are a democracy I believe that the only party that leads an entirely democratic agenda is Labor. I only suggest to choose the right timing and the right framework, and not to do it in ways that do not add credit to the Labor Party," Peretz said.

"My colleagues will decide who will lead the party. I will enter this challenge and I believe that I will win it, he added.

The defense minister said he believes that the inquiry panels on the war in Lebanon should focus their work on the operational faults.

"The major faults in the army's preparedness for the war should not be attached to one person or another," he said.

When asked about Adam's resignation, Peretz said he has not heard of the intention of any other senior officer to resign.

Maj. Gen. Eizenkot likely to replace Adam
Sources at the Israel Defense Forces high command say that the leading candidate for replace Adam is Head of Operations Directorate, Major General Gadi Eizenkot.

Adam informed IDF Chief of Staff Dan Halutz on Tuesday that he wished to retire as soon as possible. According to an IDF spokesman, Halutz accepted Adam's request.

Halutz reportedly has high esteem for Eizenkot.

The Maariv daily reported Wednesday that Adam decided to retire "when the last soldier returns from Lebanon," which is expected next week.

Peretz announced Wednesday morning that he would summon Adam for a meeting on the matter.

"The state of Israel definitely owes [Adam] a great debt," Peretz told Israel Radio. "No doubt we need to examine the meaning of the [move], why he decided to do it ... such an announcement by a general cannot be ignored."

Following Adam's announcement, Infrastructure Minister Benjamin Ben-Eliezer called on Halutz to resign.

"I respect and salute Adam's decision. He knew when to accept responsibility and I hope the Chief of Staff speak out soon and take responsibility as well," Ben-Eliezer said.

MK Aryeh Eldad (National Union) said Adam's decision to resign expresses "integrity, self respect and the ability to accept responsibility" and called on Prime Minister Ehud Olmert, Peretz and Halutz to follow in Adam's footsteps.

According to the Maariv report, Adam decided to retire a month ago, when the fighting in Lebanon ended, after he was insulted when Halutz appointed Deputy Chief of Staff Moshe Kaplinsky, to command the north during the war.

The proposal to appoint Kaplinksy was made in the early stages of the war, but was implemented only after criticism over the IDF's performance in the war was voiced by the public and politicians.

Adam told his associates that he had done all that he could to prepare the Northern Command for the war, and that he supports any measures to investigate the war, the report said.

Adam said he wanted to serve as an example for accepting responsibility and showing leadership.