In an urgent cabinet meeting on Wednesday evening, the Israeli government decided to use international pressure to dismantle Hezbollah, the Yedioth Ahronoth daily reported.

In response to Hezbollah's attack earlier in the day, the Israeli government planned to ask the international community to enforce UN resolution 1559, calling on the Lebanese army to supervise the border between Lebanon and Israel, which is recognized by the UN.

Israeli Air Forces carried out strikes against Hezbollah targets in southern Lebanon and 30 targets have been attacked so far on Wednesday.

The report said that a camp of Palestinian gunmen about 16 km south of Beirut was attacked.

On Wednesday, eight Israeli soldiers were killed and two others abducted by militants of Hezbollah, a Lebanon-based militant organization.

Hezbollah leader Sheikh Hassan Nasrallah said later that a prisoner swap was the only way to secure the release of the captured soldiers, who he said were being held in a "secure and remote" location.

But Israel held the Lebanese government responsible for the attack, and Prime Minister Ehud Olmert called the attack "an act of war" and vowed to respond severely.