JERUSALEM, Nov. 11 (Xinhuanet) -- Israeli Vice Premier Shimon Peres, who was defeated in the leadership race of his Labor party on Wednesday, congratulated the new Labor chairman Amir Peretz on Friday, Israel Radio reported.

    Peres refused to pay tribute to Peretz on Thursday, despite the recommendations of Labor's ministers.

    Several family members and confidants are trying to persuade Peres to retire, but well-informed sources said the veteran Israeli politician is now considering forming a new party with Prime Minister Ariel Sharon, who is said to be considering leaving his ruling Likud party facing grave challenges from Likud dissidents.

    Meanwhile, Peres has refused to be No. 2 in the Labor party and rejected Peretz's offer to lead Labor together.

    Peres, 82, is a long-time renowned Labor leader. He has won a Nobel Peace Prize but failed in each prime minister bid.

    The 53-year-old Peretz, a trade union leader, was declared the winner in Wednesday's Labor primaries. The newly-elected has vowed to pull Labor out of the Sharon-led coalition government and called for early national elections. Enditem