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Palestinian peace negotiator arrested for spying

Palestinian officials say they have arrested a member of their peace negotiating department for spying for Israel.

The man, whose name was not released, is part of the management staff in the umbrella Palestinian Liberation Organisation's (PLO) negotiations department and is accused of "collaborating with Israel", a security official told Reuters news agency.

Palestinians take part in a protest just outside Jerusalem's Old City Credit: Ammar Awad/Reuters

Another official said the suspect had been arrested two weeks ago.

The development likely to deepen distrust between the sides at a time of deadlocked diplomacy and simmering street violence.

Israeli officials did not immediately respond.

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Lawyer: Tel Aviv gunman was 'mentally unstable'

A bullethole is seen in the window of a restaurant at the scene of a shooting in Tel Aviv. Credit: Reuters

A lawyer who says he is the relative of a man alleged to be responsible for a fatal shooting in Tel Aviv has told reporters the gunman is mentally unstable rather than politically militant.

Speaking to Channel 2, Arab-Israeli lawyer Sami Melhem said he had previously represented the suspect in a case where he was jailed for attempting to steal a firearm from an Israeli soldier.

Melhem said the 28-year-old suspect shooter was "not sane, to the best of my knowledge since I represented him he has received treatment.

"He is receiving treatment. Recently he has been going around in the street as an insane person."

Asked if the suspect had radical religious tendencies, Melhem said: "I do not know."

A court order is reportedly banning Israeli media from reporting some aspects of the ongoing investigation, including releasing the name of the suspect.

Israeli police hunt for Tel Aviv attacker

Police searched buildings near the scene of the shooting Credit: Reuters

Israeli police are searching buildings in central Tel Aviv close to the scene of the shooting and examining CCTV footage in order to track down a gunman who killed two people and wounded five others.

Nati Shakked, the owner of the Simta bar on Dizengoff Street, which was hit by gunfire in the attack, said the assailant had waited on a bench outside before taking a machine-gun out of a bag and "shooting in every direction".

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Two killed and five injured after shooting at Israel pub

Two people were killed and five others injured when an armed attacker fired shots at a pub in Tel Aviv, Israel.

The Israeli police's foreign press spokesman, Micky Rosenfeld, said a manhunt was now underway in the city.

The Israel Breaking Twitter account posted what appeared to be CCTV footage of the moment a suspect opened fire.

People in a restaurant can be seen fleeing and taking shelter as shots are fired.

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Israel reduces former PM's jail sentence to 18 months

Israel's Supreme Court has reduced former Prime Minister Ehud Olmert's prison sentence to 18 months, down from six years, after partly overturning a bribery conviction from last year.

Former Israeli Prime Minister Ehud Olmert has been sentenced to prison Credit: Reuters

Olmert, who served as Prime Minister from 2006 to 2009, will begin his sentence on February 15 - making him Israel's first former head of government to be imprisoned.

The charges relate to his term as Mayor of Jerusalem from 1992 to 2003, and a large real estate deal in the city.

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