Israeli Prime Minister Ehud Olmert said late Thursday he will resign if he is indicted on allegations he illegally accepted hundreds of thousands of dollars from a U.S. businessman before taking office.Israeli Prime Minister Ehud Olmert, left, is seen here with American businessman Moshe Talansky in New York City in 2003. (Channel 10 Israel/Associated Press)

Olmert made the comments at a late-night televised press conference at his Jerusalem residence after a gag order on the case was lifted to reveal details of the police investigation into his finances.

Olmert, who has been plagued by previous corruption allegations stemming from his days as Jerusalem's mayor, admitted to reporters that he accepted campaign donations from New York financier Moshe Talansky but denied they were bribes.

"I never took bribes. I never took a penny for myself," he said. "If I am indicted, I will resign my post."

If Olmert were to resign, the political instability could throw already fledging peace talks with the Palestinians into further disarray.

Details of the case have been kept from the Israeli public after a judge ordered a sweeping publication ban last week. But rumours swirling about Olmert's future overshadowed the country's massive 60th anniversary celebrations.

At a U.S.-sponsored summit in November, Olmert and Palestinian President Mahmoud Abbas pledged to work toward a peace agreement by the end of 2008.