JERUSALEM - Israel's Nobel prize-winning former prime minister Shimon Peres described the Shiite militia Hezbollah on Friday as a "cancer" in Lebanon.

Peres, who has recently joined ranks with Israeli Prime Minister Ariel Sharon, told a meeting with students in Tel Aviv that Hezbollah had pervaded and compromised all ranks of Lebanese government.

"Lebanon could have become independent. It is a prosperous country, with no enemies and with an internationally-recognised border," Peres was quoted as saying in a statement from his office.

"Hezbollah holds back Lebanon. It is a state within a state, an army within an army. It is like a cancer. Nobody wants it."

The comments from Peres, who stood down from his post as deputy premier last month, come after a barrage of rocket attacks on northern Israel from southern Lebanon where Hezbollah has its stronghold.

Israel pinned the blame on a small pro-Syrian Palestinian faction which is based in Lebanon but also said that the firing would have taken place with the approval of Hezbollah.

Israel pulled its last troops out of southern Lebanon more than five years ago but cross-border violence continues to erupt sporadically.

Hezbollah, which has a minister in the Lebanese cabinet, has so far ignored a UN resolution calling for its disarmament.

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