Cabinet minister and former senior Shin Bet official Gideon Ezra of Prime Minister Ehud Olmert's Kadima party, has proposed releasing imprisoned Fatah-Tanzim leader Marwan Barghouti in exchange for kidnapped soldier Gilad Shalit and a pledge to continue the cease-fire.

Ezra said Barghouti's release could reduce terror and strengthen Fatah as a moderate factor.

Olmert told the Knesset Foreign Affairs and Defense Committee that it cannot be said that the cease-fire is holding, because 15 Qassam rockets have been fired since it was declared.

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"It must stop," Olmert said, but added he believed Israel should show restraint in the face of the rocket fire. "We want to create momentum that will bring about a diplomatic process with the Palestinians. We are not looking for any excuses."

Speaking at the Likud faction meeting, Likud chairman Benjamin Netanyahu said, "Hamas continues to fire rockets and if it doesn't stop there will be tragic results, which we have already seen," adding, "the policy of restraint will turn Gaza into Lebanon number two," due to "unilateral cease-fire, which strengthens Hamas and weakens the moderates."