Peretz made the statements at a joint news conference with Israel Defenses Forces Chief of Staff Dan Halutz in Tel Aviv,which was broadcast live by local TV channels.

"Our goal is to achieve a reality in which Hezbollah does not threaten Israel and its citizens," Peretz said.

Insisting on Israel's right of self-defense, Peretz said that "everything" would be done against those who attacked Israel, adding that Israel would not allow the presence of Hezbollah guerillas in the border area.

He said that Israel would "exert all the power required" in order to defend itself, adding that the recruitment of reserve soldiers was aimed at "preparing for any possible development" in Lebanon.

Meanwhile, Halutz announced that the Israeli army had inflicted "enormous" strategic damage to Hezbollah during the 16-day-old onslaught in Lebanon.

Hundreds of Hezbollah fighters have been hit during the Israeli assault, according to Halutz, who also said that Hezbollah's weapons capabilities had also been "damaged significantly."

In addition, the Israeli military chief said that the Israeli army would draft up to three divisions, following the cabinet's approval. Three divisions are made up of between about 18,000 to 30,000 soldiers.

Both Peretz and Halutz said that the Israeli military offensive in Lebanon would "continue as long as it takes", but added that Israel had no intention to "open a front" with Syria, which supports Hezbollah.

The top Israeli military brass' statements came after the Israeli cabinet decided against a massive ground invasion of Lebanon earlier in the day.

But the cabinet agreed to call up more reserve soldiers if need be.

Israel launched a big assault against the Lebanese Shiite group Hezbollah on July 12 when Hezbollah guerillas kidnapped two Israeli soldiers and killed eight others during cross-border attacks.

The Israeli army has launched intense airstrikes on targets across Lebanon and small units of ground forces are operating on the Lebanese side of the border to carry out "pinpoint" attacks against Hezbollah strongholds.