The ministerial committee on legislation on Sunday approved Yisrael Beiteinu Chairman Avigdor Lieberman's proposal to change the system of government.

Under the plan, the prime minister would be elected directly, and the office of the president abolished, with his authority transferred to the prime minister.

The bill passed by a five to four margin, and Health Minister Yaacov Ben Izri (Pensioners Party), who opposes the bill, acceded to Prime Minister Ehud Olmert's request and did not attend the hearing.

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Committee chairman Justice Minister Meir Sheetrit rejected a petition by Labor minister Shalom Simhon to turn the issue over to the full cabinet.

Following the committee's decision, Labor ministers chose to appeal the decision to the full cabinet. The appeal is expected to be discussed in roughly two weeks, apparently delaying the preliminary Knesset reading of the bill until then.

The committee in essence approved a compromise proposal put forward by Sheetrit, in which the committee's approval is conditioned on the cabinet voting each Knesset reading following the preliminary one.

The condition is designed to allow the Justice Ministry to formulate an alternative proposal on behalf of the government.

Sheetrit supports changing the system of government, but believes the bill should be proposed by the government following extensive consideration and deliberations, and not by an individual member of Knesset.

Olmert supports the bill and has promised that his Kadima party will support the bill in its preliminary Knesset reading.

Labor, however, plans to try to defeat the bill in the Knesset, and thereby torpedo Lieberman's entry into the coalition.

Both Labor faction chair MK Ephraim Sneh and Labor MK Shelly Yachimovich began lobbying fellow Knesset members on this issue over the weekend.

Despite Olmert's support, the bill lacks a Knesset majority: while the premier may be able to command his own party, he has thus far been unable to persuade any of his three coalition partners - Labor, Shas and the Pensioners - to do so.

Lieberman presented his bill roughly three months ago, and calls for several changes aimed at stabilizing the often-shaky coalition governments.

The proposal adopts the Norwegian system, by which the cabinet ministers, not including the prime minister, cannot be MKs.

The prime minister will continue to govern unless a bill to remove him from office is proposed by no less than 40 MKs and approved by no less than 80, and could serve a maximum of two consecutive terms.

A majority of at least 70 MKs would be needed in order to force a cabinet minister to resign.