However, it is only by seven seats, meaning Ehud Olmert's government is now vulnerable to any similar withdrawal by the religious party Shas.
{josquote} Negotiations on the basis of land for peace are a critical mistake... and will destroy us
Avigdor Lieberman{/josquote}
Shas has 12 seats and has also threatened to leave the coalition over the issue of peace talks.
"A few minutes ago, I spoke to the prime minister and I also gave him a written announcement of our departure from the coalition and my resignation from the government," Mr Lieberman said.
"Negotiations on the basis of land for peace are a critical mistake... and will destroy us," the outgoing strategic affairs minister and deputy prime minister told a news conference.
"It is clear to everyone that these talks will lead to nothing."
Correspondents have often highlighted the contradictions of Mr Lieberman's participation in a coalition pledging to make peace with the Palestinians.
He is one of Israel's most outspoken hardliners, who has in the past suggested bombing Egypt's Aswan Dam and executing Israeli Arab MPs, as well as reportedly calling for Palestinian prisoners to be drowned.
Mr Olmert's political vulnerability could increase later this month, with the publication of an inquiry into the 2006 Lebanon war, which is expected to criticise his government.
But a statement by Mr Olmert's office said final status talks - on Jerusalem, borders, Jewish settlements and Palestinian refugees - were "the only real chance of ensuring the peace and security of Israeli citizens".
The departure of Yisrael Beitenu, which appeals to Israel's large immigrant community from the former Soviet Union, leaves the coalition led by Mr Olmert's Kadima party with 67 seats in the 120-seat chamber.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/middle_east/7191350.stm
Published: 2008/01/16 11:25:54 GMT
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