Israel grabbed strategic high ground in south Lebanon, but delayed a major push northward, as diplomats talked of progress towards agreement on a United Nations ceasefire resolution.

Israel’s new government is drawing up plans to divide the holy city of Jerusalem, according to officials.

After declaring victory in Israeli elections, acting Prime Minister Ehud Olmert’s Kadima Party said today it would quickly form a broad ruling coalition that will pull out of much of the West Bank and draw Israel’s borders by 2010.