Israel's national fraud unit says Prime minister Ehud Olmert should be indicted for his role in an investment affair while he was trade minister.

Police say they found enough evidence to indict Olmert for fraud and breach of trust. He's suspected of channeling state investment funds to a firm headed by his former law partner.

Just five days ago, Israel's attorney general said he plans to indict Olmert in another case involving cash gifts from an American businessman.

Olmert faces six separate criminal investigations.

But he will remain prime minister until Likud leader Benjamin Netanyahu can form a new government.