Newly-elected Labor Party leader and former Israeli prime minister Ehud Barak was appointed by Israeli Prime Minister Ehud Olmert on Friday as new defense minister, replacing Amir Peretz, an Israeli official and local media said.

According to popular Israeli daily Yedioth Ahronoth, Olmert decided on the appointment, which is expected to receive the government's approval, at his meeting with Barak on Friday morning.

Olmert has called some of his cabinet ministers for their agreement over this appointment, said the daily, adding Peretz will remain in the government as a minister without a portfolio.

During the meeting, Olmert said that he wished to rush the appointment in light of the tense security situation and the collapse of the Palestinian National Authority in the Gaza Strip.

Barak responded to Olmert's request, and is expected to assume his new post upon being sworn into Knesset (Parliament) on Monday.

On Wednesday, Barak defeated rival Knesset member Ami Ayalon to capture the chairmanship of the Labor Party in a hard-fought primary.