Occupied Jerusalem: Israeli police questioned Prime Minister Ehud Olmert on Friday as part of an investigation into suspected corruption.

Police spokesman Micky Rosenfeld said Olmert was being questioned in his residence, but declined to provide further details.

Olmert is under criminal investigation into accusations he dispensed favours in return for a discount on the 2004 purchase price of a home in Occupied Jerusalem.

He is also being investigated over allegations that as trade minister in 2003, he appointed allies to a state business authority. He has denied any wrongdoing.

Israel's attorney general on Thursday gave investigators special permission to conduct Friday's questioning.