Israeli police on Thursday recommended that outgoing Prime Minister Ehud Olmert be indicted in yet another of a series of corruption scandals that forced his resignation and led to an early election.

The recommendation stemmed from allegations that Olmert, while serving as minister of trade and finance between 2003 and 2006, granted favours to associates.

Olmert, who resigned in September but is staying on until a new government is formed following a Feb. 10 election, has denied any wrongdoing.

Police spokesman Micky Rosenfeld said the anti-fraud unit's non-binding recommendation to Attorney General Menachem Mazuz included evidence of "fraud and breach of trust".

"Flooding the public with decisions and recommendations of this kind or another is done not by chance, but in the hope that it will hide the weakness of the claims," Olmert press advisor Amir Dan said.

In a separate graft case, Israel's Justice Ministry said this week it has evidence that Olmert kept more than $350,000 in a secret fund from a U.S. businessman who handed him cash-filled envelopes.

Mazuz has also said he is considering indicting Olmert over suspicions he made duplicate overseas travel expenses claims while serving as Jerusalem's mayor and as a cabinet minister.