Tibi, head of the Arab Movement For Change, which had two deputies in the outgoing Knesset was accused by the commission of "supporting terrorist organizations which commit anti-Israeli attacks".

"I am very happy about this decision. The Supreme Court has opposed the anti-democratic decision initiated by the right against us," Tibi told Israeli public radio after the ruling.

After the decision, Bishara told the BBC it was important for Arab Israelis to be represented in the Knesset.

The row over Tibi's and his candidacies could even increase turnout among Arab Israelis, Bishara said.

"I think [the outcome] will produce a dynamic of more and more Arabs coming to vote," he said.

"The affair produced a challenge for the Arab voters to raise the number of Arab representatives in the parliament."

The BBC's Barbara Plett correspondent in Occupied Jerusalem says the threatened exclusion from polls of the legislators was seen by Arab Israelis as an ominous sign in their already troubled relations with the Jewish majority.

Members of the Jewish left had also protested against what they called an erosion of political rights.

Israel's Arab community counts 1.2 million people and represents about 17 percent of the voting population.

The outgoing parliament includes 10 Arab-Israeli lawmakers out of a total of 120 legislators.

Meanwhile, newspaper polls indicate support is falling for the ruling Likud Party which has been hit by corruption scandal.

New opinion polls in the Israeli press have reflected an apparent weakening in support for Sharon.

One survey by the Ha'aretz newspaper suggests Sharon's Likud Party will win just 27 parliamentary seats in the election, down from about 40 at the start of the campaign.

But Sharon is still seen as likely to be able to form a right-wing coalition government after the election.

The opinion polls come after accusation Sharon and his sons received 1.5 million dollars in improper loans.

Last month there were accusations that Likud party members paid bribes for votes in a December primary.

Likud's campaign manager Ehud Olmert told Israel Army Radio that the scandals were hurting the party.

"There is no doubt that the events of the last two weeks have worked to the Likud's detriment," he said.

Sharon and his two sons secured a bank guarantee from South African businessman Cyril Kern to cover debts Sharon was obliged to pay back for illegal campaign contributions in 1999.

"We have received an official document from the Israeli State Attorney General's office in (Occupied) Jerusalem requesting help in investigating the donation," Justice Department spokesman Paul Setsetse told AFP.

"They have expressed a sense of urgency in the documents and we are also mindful of the fact that they are busy with their investigation, so we will try to expedite the issue as speedily as possible," Setsetse said.

"We hope to put out a statement about it by the end of next week," he said.

Kern has acknowledged making the payment, saying he was an old friend of Sharon, but has dismissed the allegations of corruption.

Attorney General Eliakim Rubenstein on Wednesday, January 8, said he would investigate how details of the probe into Sharon and his sons were leaked to the Israeli daily Haaretz, which broke the story, Israeli radio reported.

A poll released Wednesday showed that 31 percent of Israelis consider Sharon unfit to stay on as premier after the scandal.