His remarks were made as the Egyptian regime wrestles with a wave of unprecedented anti-government protests, which have pitted hundreds of thousands of demonstrators against the regime of embattled President Hosni Mubarak.

Although it was not extremist elements that provoked the instability in Tunisia or Egypt, the fear was that they could exploit the political vacuum left by the collapse of the ruling power, Netanyahu added, saying he was being updated about developments “every half hour.””Every one hopes that this will be resolved peacefully, that stability will return and peace will be maintained,” he added.

The volatile situation in Egypt, which comes hot on the heels of the revolution in Tunisia that ousted president Zine El Abdine Ben Ali, has sparked fears in Israel about the loss of its closest regional ally, President Hosni Mubarak.

On Sunday, Netanyahu had stressed that Israel's efforts were focused on maintaining the “stability and security” of the region, and said he had ordered his ministers not to make any remarks on the developments in Egypt.

Peace between the two neighbours had existed for more than three decades and Israel's aim was “to ensure that these relations continue to exist,” Netanyahu said, while insisting Israel would act “responsibly, with restraint and maximum discretion.”Earlier, Merkel had raised concerns about the implications of the unrest in Egypt, pushing Netanyahu to “urgently” address the deadlocked peace negotiations with the Palestinians in a bid to calm the situation, a source close to the German government said.

Merkel had told Netanyahu that what was happening in Egypt “made made it even more necessary for Israel to be more constructive in the discussions on the peace process,” he said.

At the talks, both sides agreed that “concrete steps (to advance the peace process) should be taken within the coming six months.” – AFP