Israeli Prime Minister Ehud Olmert and Defense Minister Amir Peretz on Friday ordered the Israel Defense Forces (IDF) to implement an expanded ground assault in south Lebanon, local newspaper Ha'aretz reported.

Olmert and Peretz made the decision after meeting for several hours Friday as the UN Security Council is now working on a revised draft resolution to end the fighting between Israel and Lebanon's Hezbollah.

The Israeli security cabinet on Wednesday approved expanding the army's ground operations in south Lebanon, under which thousands of IDF troops will push up to the Litani River, about 20km from the Israeli border, in an effort to halt Hezbollah's incessant rocket attacks on northern Israel.

But Olmert put the decision on hold to exhaust diplomatic efforts on a UN ceasefire resolution.

Lebanon has called for amendment to the U.S.-French draft resolution to include immediate ceasefire and Israeli pullout from Lebanon while Israel ruled out truce until deployment of a robust international force in south Lebanon.

The IDF were engaged in heavy exchanges of fire with Hezbollah in southern Lebanon on Friday, with one soldier wounded by an anti-tank missile near the village of Rajamin, Ha'aretz said.

Heavy gun battles continued in the nearby village of Rashef, and six soldiers sustained light wounds, it added.

Over 1,000 Lebanese and some 120 Israelis including 82 soldiers have been killed since the violence broke out on July 12 following the capture of two Israeli soldiers by Hezbollah guerillas in cross-border attacks.