Former Israeli prime minister Ehud Olmert is suspected of taking bribes in a growing Jerusalem corruption case, police said today.
Mr Olmert (63) returned to Israel from Spain today amid reports of his involvement in the case.
Police then confirmed he was a suspect, after a court-issued gag order was eased.
Mr Olmert has denied any connection.
Police last week arrested Mr Olmert's former law associate, Uri Messer, in a inquiry into whether bribes were paid to obtain permits to build the Holyland luxury housing development, a towering complex that dominates a hill in the western part of the city. Mr Olmert was mayor of Jerusalem at the time.
For years, many Israelis have questioned how the fortress-like circle of towers - still under construction and widely viewed as an eyesore - received planning permission in a holy city that is mostly low-rise.
Israeli police also arrested a former mayor of Jerusalem yesterday. A court spokeswoman said Uri Lupolianski, an Orthodox rabbi who succeeded Mr Olmert as mayor in 2003 and served until 2008, appeared in court and was remanded in custody until April 18th. She declined to give details of any charges.
Mr Olmert, prime minister from 2006 to 2009, is already standing trial in a series of corruption cases that forced him from office. He has denied any wrongdoing.