Sources in Jerusalem said on Friday that officials in the Prime Minister's Office apparently leaked details of secret contacts between Israel and Libya in a deliberate effort to sabotage attempts to establish diplomatic ties between the two nations.
The initiative to explore prospects for forging ties with Libya was being pursued by Israel's Foreign Ministry despite opposition from some Sharon aides, one Israeli official said.
Meanwhile, In Paris on Friday, Libyan Foreign Minister Mohamed Abderrhmane Chalgam denied any talks had taken place with Israel.
"No contact at any level can take place without the minister of foreign affairs," he told reporters. "These are rumors."
Haaretz