Israeli Prime Minister Ehud Olmert delivers a speech at the Knesset, Israel 's parliament, in Jerusalem, Monday, July 17, 2006. After six days of fighting in Lebanon, Olmert said Monday that the fighting would end when the two soldiers captured by Hezbollah guerrillas were freed, rocket attacks on Israel stopped and the Lebanese army deployed along the border. -Xinhua/AFP

Israel did not rule out negotiations to resolve the conflict with Hezbollah, Israeli Prime Minister Ehud Olmert said when he paid a surprise visit to the rocket-battered city of Haifa on Tuesday evening.

But the negotiations should be "on the condition the hostages are returned and UN resolution 1559 is enforced," Olmert said in a meeting with heads of about 60 regional councils in northern Israel, Israeli Channel 10 TV reported.

Resolution 1559 called for the deployment of the Lebanese army along the border with Israel and disarming Hezbollah. Olmert hinted that it was premature to discuss the stationing of international peacekeeping force in southern Lebanon as suggested by UN Secretary General Kofi Annan.

He also pointed out that Hezbollah's operation was coordinated with Iran and was aimed at drawing the international attention from Iran.

Earlier on Tuesday, Olmert said Israel would continue a seven-day-old massive assault in Lebanon until two Israeli soldiers taken hostage by Lebanon's Hezbollah guerillas were released and rocket attacks on Israel stopped.