Ehud Olmert, the Israeli prime minister, should be indicted for an alleged investment scheme, police say.

The recommendation to indict Olmert was issued on Thursday, adding more charges to a series of corruption scandals that have forced his resignation.

A police statement said that during Olmert's term as trade minister under Ariel Sharon, the former Israeli prime minister, he diverted state money to Uri Messer, a former law partner.

Micky Rosenfeld, a police spokesman, said the anti-fraud unit's non-binding recommendation included evidence of "fraud and breach of trust".

Olmert, who resigned in September but is staying on until a new government is formed following a February 10 election, has denied the allegations.

The outgoing prime minister faces six other simultaneous investigations on claims involving bribery, money-laundering and fraud with Morris Talansky, a US businessman.