JERUSALEM, May 2 (Xinhua) -- Israeli Foreign Minister Tzipi Livni said Wednesday afternoon that she has already told Prime Minister Ehud Olmert that his resignation is the right thing to do.

    Livni made the call at a press conference in Jerusalem after her hour-long meeting with Olmert over a critical report on his handling of last year's Israeli-Hezbollah war.

    Livni told the reporters that "I told the prime minister in private talks that resignation would be the right thing." The public has lost faith in the government. We must restore it immediately," she added.

    Livni said that she wasn't engaged in any attempts to oust Olmert, adding that she herself would not resign.

    The ruling Kadima party should hold primary elections to elect a new leader to replace Olmert, she said.

    "I believe that Kadima should stay and run the State of Israel. When the time comes, I will announce my candidacy for the party's leadership," she said.

    "I believe general elections would be a mistake as the State of Israel needs stability. If the prime minister decides to resign, I believe the Knesset (Parliament) can put a government together."

    Meanwhile, Livni lamented the lack of cooperation between her and the prime minister during the 34-day war with Hezbollah, saying her ministry was sidelined by the prime minister and prevented from having a say in decision-making.

    "It is no secret that during the war there was no cooperation of the kind, as the commission ruled that the responsibility for the lack of cooperation falls on the prime minister," she told the press conference.

    "Cooperation between the prime minister and the foreign minister is not a personal, but a critical," Livni said, adding she would remain in government "to ensure that improvements are carried out."

    An Israeli governmental investigative panel, headed by retired judge Eliyahu Winograd, released an interim report probing the shortcomings in the Second Lebanon War on Monday which accuses Ehud Olmert, Defense Minister Amir Peretz, and former Chief of Staff Dan Halutz of failing in their roles.

    In a televised address to the nation following the release of the Winograd report, Olmert insisted that he will not step down.