The secretary-general of the Kibbutz Movement on Sunday denied reports that a political deal was made under which Avigdor Kahalani would be replaced by the Kibbutz Movement's Yoel Marshak as head of the Defense Ministry's Social Welfare Department.

Ze'ev Shor stressed that "the Kibbutz Movement does not negotiate deals," but said the movement is interested in the position.

Marshak acts as head of the United Kibbutz Movement's Special Assignments Division.

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Shor said that the subject did not come up during his conversation with Defense Minister Amir Peretz on Friday.

"I wasn't privy to any discussion on the decision," said Shor. "But naturally, it would be fitting for a Kibbutz member to fill the position."

Peretz has decided to end Kahalani's term as head of the Social Welfare Department after two years.

In a conversation between Peretz and Kahalani, Peretz offered to delay Kahalani's removal from office by three months, to coincide with the end of Kahalani's contract.

Channel 2 reported Saturday that Kahalani refused Peretz's proposal and said the Minister would have to fire him if he wished for him to leave.

According to Kahalani's associates, Peretz told him that he intends to appoint a representative of the Kibbutz Movement in his place. The associates criticized Peretz for following political motives that stem from his desire to gain the movement's support for the upcoming Labor Party internal elections.

The associates said Peretz admitted that he was being pressured to nominate a Kibbutz Movement representative for the position.

Sources in the Defense Minister's office said that Peretz was planning on nominating a different person for the position and that he would like to coordinate the nomination with Kahalani in an upcoming meeting between the two on the matter.

The sources said the minister was considering offering Kahalani a different position within the Defense Ministry.

Cabinet ministers Sunday morning criticized Peretz's decision to remove Kahalani from office.

Ze`ev Boim, Minister of Immigrant Absorption, said Peretz was following "political considerations" and called Kahalani an "Israeli hero."

Shalom Simhon, Mnister of Agriculture and Rural Development, also criticized the plans to remove Kahalani from office.