The Lebanese Army Intelligence has reportedly arrested two men for belonging to Fatah al-Islam terrorist group, one of them a militant who receives direct orders from the network's leader Osama al-Shehabi.

High-ranking security sources told al-Joumhouria daily published Wednesday that Khalil Ahmed al-Boubou, who was jailed for five years after a 2006 attack on the Lebanese army at the Fakhreddine Barracks, was recently seized for helping an Algerian Fatah al-Islam militant escape Roumieh prison.

Several inmates rioted at the prison of the eastern city of Zahle on Wednesday to protest the transfer of two other convicts to another prison, media reports said.

They said the prisoners burned their belongings in one of the cells, which prompted guards to call for firefighters to put out the blaze.

Progressive Socialist Party leader MP Walid Jumblat's initiative to end the political crisis in the country is seeking to find common ground among the political foes to end the deadlock, local newspapers reported on Wednesday.

Jumblat's initiative is based on finding an alternative to Prime Minister Najib Miqati's cabinet without causing any political vacuum in the country.

Phalange Party leader Amin Gemayel kicked off consultations in coordination with President Michel Suleiman to discuss the possibility of forming a new cabinet, al-Akhbar newspaper reported on Wednesday.

According to the daily, Gemayel is seeking consensus among Lebanese foes to form a new government.

A Hizbullah official in south Lebanon said the party was on full alert in case of any Israeli attack in light of the aggression on the Gaza Strip, but denied fighters were policing the border to prevent attacks on the Jewish state.

"This is a job for the (Lebanese) army and United Nations peacekeepers, not Hizbullah," the official told the Associated Press.

New York's highest court ruled Tuesday that a Lebanese bank's use of a New York account for multimillion-dollar wire transfers establishes the basis for a lawsuit in the U.S. by Israeli "victims" of Hizbullah's rocket attacks in the 2006 war.

The lawsuit was filed by American, Canadian and Israeli citizens who live in northern Israel. It claims that Lebanese Canadian Bank supported terrorism by handling international financial transactions of the Hizbullah affiliate Shahid Foundation. The lawsuit says the money was moved through an account at American Express Bank in New York.

Prime Minister Najib Miqati on Tuesday stressed that Lebanon's borders will not be used to send weapons to Gaza, noting that Hizbullah chief Sayyed Hassan Nasrallah only voiced “political” remarks in this regard.

“The border will not be opened and Nasrallah's remarks are political remarks. Weapons will not be sent from Lebanon to Gaza,” Miqati said in response to a question during an interview with LBCI television in Paris where he is on an official visit.

Al-Mustaqbal bloc condemned on Tuesday the Israeli assaults targeting the Palestinians in Gaza, noting that the Syrian regime's “crimes have surpassed those committed by Israel”.

"Israelis have once again demonstrated their criminal and violent nature,” said al-Mustaqbal MPs in a statement released after the bloc's weekly meeting.

Free Patriotic Movement leader MP Michel Aoun on Tuesday warned that “the accumulation of refugees” on Lebanon's border with Syria “poses a threat” to the country, adding that President Michel Suleiman must ask the Army Command about "its ability to defend the borders so that we come up with a vision for the defense strategy."

“I said in the past that the accumulation of refugees on the Lebanese border confirms that they are not all refugees and this poses a threat, especially if they are fighters taking part in the war in Syria,” Aoun warned after the weekly meeting of the Change and Reform bloc in Rabiyeh.

French Foreign Minister Laurent Fabius reiterated on Tuesday that France will not interfere in Lebanon's domestic affairs, but fully supports its stability.

“France does not interfere in Lebanon's internal affairs, but we fully back stability in Lebanon,” he said after holding talks with Prime Minister Najib Miqati at the French Foreign Ministry in Quai d'Orsay in Paris.