Embattled Sharon calls early Israeli elections
The upheaval that erupted in Israel after Mr Sharon's "unity government" collapsed last week also meant peace efforts with the Palestinians were certain to be put on the back burner.
"I will dissolve the Knesset and call general elections within 90 days," Mr Sharon told a news conference after failing to form a right-wing government to replace his 20-month-old broad coalition.
"The date is one of the first days of February."
But a spokesman for Israel's parliament later said that under an official decree that sets a time frame for a snap election, voters would go to the polls on January 28.
Before the ballot Israel's two main parties Mr Sharon's right-wing Likud and the centre-left Labour Party that left his coalition last week in a dispute over funding for Jewish settlements on occupied land will hold leadership elections.
Hawkish former Prime Minister Benjamin Netanyahu said now Mr Sharon had agreed to an election, he would agree to become foreign minister in the outgoing government then challenge him in the Likud primary. No date has been set for that contest.
Labour, led by former Defence Minister Binyamin Ben-Eliezer, holds its primary on November 19. He faces a tough challenge from two dovish candidates, former general Amram Mitzna and party veteran Haim Ramon.
Mr Sharon had resisted an early election, saying the timing was wrong as Israel faces deep recession and war clouds hang over the Gulf. Under Israeli law, he was obliged to call an election only by October 2003.
But Mr Sharon said his desire to preserve a "special relationship" with Washington was a main factor in deciding to end efforts to woo ultra-nationalist parties which he accused of "political blackmail" into a right-wing government.
Political commentators forecast Likud would do well in an election, buoyed by a shift to the right in Israel in response to Palestinian suicide bombings in a two-year-old uprising for statehood.
If war erupts during the election campaign and Iraq launches missiles at Israel after a US attack, Mr Sharon would likely shy from moves that could be interpreted as weakness by Israeli voters as was the case in the 1991 Gulf conflict. The Israeli leader has promised to exercise "maximum restraint" in the event of an Iraqi missile strike, although he has said "Israel will respond" if Baghdad attacks it with weapons of mass destruction and causes casualties.
Palestinians called on Israelis to choose a government committed to the peace process, shattered as it may be.
"What is needed now is an Israeli government committed to peace because this is the only path to security and stability," Nabil Abu Rdainah, a senior adviser to Palestinian President Yasser Arafat said.
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