Israel's military chief resigned on Wednesday in the wake of calls that he step down because of the failure of the country to achieve victory in its summer conflict in Lebanon.

Lt.-Gen. Dan Halutz, 58, made the announcement early Wednesday. The move puts pressure on Israeli Prime Minister Ehud Olmert, who said in a statement that Halutz is one of Israel's "greatest warriors."

Dan Halutz, shown here in uniform with Israeli Prime Minister Ehud Olmert, resigned on Wednesday over last summer's conflict with Hezbollah.
(Moshe Milner/GPO/ Associated Press)

"He did not agree to my request that he reconsider. I very much regret the chief of staff's resignation," Olmert said in the statement released Wednesday.

Halutz, the chief of staff for Israel's defence forces, said in his resignation letter that the time was right for him to "act with responsibility" and step down after he had overseen the Israeli military's own reviews of the conflict.

"For me, the word 'responsibility' is very significant," Halutz wrote in the letter. "My concept of responsibility is what led me to remain in my position until this point, and to place this letter on your desk today."

A government-appointed inquiry is investigating the conduct of Olmert and Israeli Defence Minister Amir Peretz into the conflict between Israel and the militant group Hezbollah that came to an end when both sides agreed to a ceasefire on Aug. 14. The hostilities devastated parts of Lebanon.

Halutz, a former fighter pilot, was expected to meet Peretz later Wednesday to discuss his decision. Peretz has also expressed his regret at the resignation.

The resignation is bad news for Olmert, who is facing a criminal investigation by police into his role in the sale of Bank Leumi, Israel's second-largest bank, which was privatized before he became prime minister last year.

CBC's Peter Armstrong, in a report from Jerusalem, said troops, families of soldiers who died in the conflict and members of the military elite had been calling for Halutz's resignation, along with those of Olmert and Peretz, following the 34-day conflict.

"This country bombarded southern Lebanon with artillery shells and air strikes and ended up with a full blown invasion of southern Lebanon, yet emerged without a clear victory, something that many people here in this country consider to be simply unacceptable," Armstong said.

The conflict, considered to be the largest military operation undertaken by Israel since 1982, led to the deaths of more than 1,000 people, according to United Nations estimates, Israeli and Lebanese officials. UNICEF said about a third of the people killed were children.

Lebanon has said the majority of dead were Lebanese civilians. Of the total, Israeli officials said 159 of the deaths occurred in Israel and the number includes 39 civilians who were killed because of rocket attacks.

Military inquiries

Hezbollah said 250 of its fighters were killed in the hostilities, but Israel said it believes that number is closer to 600.

Israel launched the operation after Hezbollah captured two Israeli soldiers and killed three others in a cross-border raid on July 12. The conflict included Israeli air strikes on Hezbollah strongholds in Beirut and Hezbollah rocket attacks on Israeli cities and towns.

On Wednesday, the Israeli military said Halutz made the decision after the military finished its own inquiries into the conflict, none of which called for his resignation.

"Now that this process has been completed, the chief of staff has asked to resign immediately," the military said in a statement.

Halutz, who has held the position of chief of staff since 2005, was expected to remain on the job until a replacement is appointed.

With files from the Associated Press