Prime Minister Ehud Olmert announced Friday his intention to seek a second term as the leader of the Kadima party and run as its candidate for the position of prime minister in the next general elections.

During an address to Kibbutz Movement leaders at Kibbutz Yifat, Olmert reiterated he would not step down despite criticism by State Comptroller Micha Lindenstrauss of his handling of the Second Lebanon War last summer.

Olmert's announcement verified speculation he would run against political rivals within his party, ministers Tzipi Livni, Meir Sheetrit and Shaul Mofaz, also expected to take part in the race.

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On the situation in the Gaza Strip, the prime minister said he could not promise the situation along the border with the southern Palestinian territory will not become similar to the status quo that existed along the northern border prior to the outbreak of the Second Lebanon War, Israel Radio reported.

Nonetheless, Olmert said he is convinced that Israel should not launch a major ground assault in Gaza, nor should it reoccupy the Strip, the report stated.

A senior Israel Defense Forces source said Thursday that the army is very concerned about Hamas' growing strength in the Gaza Strip, but not enough to lead it to ask for permission to carry out a large-scale military operation there.

The prime minister expressed reservations regarding a High Court of Justice decision obligating the state to reinforce schools in the Gaza area by the beginning of the next school year, in order to help protect them against Qassam rocket fire. "The court will not decide where to reinforce and when to reinforce," he said.

According to the radio, Olmert also called on Syrian President Bashar Assad to begin direct peace negotiations without American mediation.

The prime minister called on Assad to drop his demand that Israel agree to withdraw from the Golan Heights as a precondition to talks, saying the Syrian president's demand for an Israeli withdrawal to the pre-1967 lines is a precondition that Israel cannot accept.

On Thursday, President Shimon Peres called for direct negotiations with Syria if its stated desire for peace talks is genuine.

The prime minister also referred to the convergence plan - a proposed unilateral withdrawal from much of the West Bank, on which he based his 2006 election campaign - saying that at this stage, neither unilateral steps nor the evacuation of settlements are on the agenda.

"In the long run, everyone understands that Israel cannot exist if the Jewish majority is not ensured;" he said. "For this reason we will have to make difficult decisions."

According to the radio, Olmert stressed that the current diplomatic focus is on reaching a negotiated agreement with the Palestinian Authority that is acceptable to both sides.

The prime minister added that he has no intention of resigning over the state comptrollers investigations into him or the criticism of his handling of the Second Lebanon War, saying he intends to be Kadima's candidate for prime minister in the next elections.

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