The BBC reports that Egypt’s Supreme Constitutional Court has “warned” President Mursi that he must uphold the country’s constitution, and ruled that Mursi’s recall of parliament has no legal basis. Sky News looks at the meeting between international envoy Kofi Annan and Syrian president Bashar al-Assad yesterday. There are also quotes from Assad’s interview to German television, in which he appeared to rule out stepping down from power voluntarily. The BBC reports on the defection of General Manaf Tlas, commander of the 10^th Brigade of the Syrian Republican Guard. Tlas, a childhood friend of Bashar al-Assad and son of long-time defence minister Mustafa Tlass, has fled to Turkey. The BBC describes his defection as leaving the Assad regime “increasingly prone to a collapse… that could be both sudden and unpredictable.” The Independent reports that a judicial panel appointed by prime minister Netanyahu has recommended that Israel legalise dozens of West Bank settlement outposts. The Guardian notes that such a move is likely to result in significant international opposition. The report, chaired by former Supreme Court Justice Edmond Levy, also states that Israeli presence in the West Bank does not constitute a state of occupation under international law. The Independent carries a comment piece by Andy McSmith, in which he discusses Palestinian calls to replace the Quartet Representative to the Middle East peace process, Tony Blair. The Guardian has an interview with a female retired Brigadier General in the IDF, Yehudit Grisaro, which describes the IDF as “the most progressive in the world – when measured in terms of gender equality, at least”.

This morning’s verdict in the cases brought against former prime minister Ehud Olmert dominates the Israeli media. Olmert was convicted of breach of trust in the case of the Investment Center, in which he used his position to assist a former business partner. However he was cleared of more serious corruption charges in the cases known as ‘Rishontours’, ‘Talansky’s cash-filled envelopes’ and ‘the pen collection’.  Maariv notes the findings of the Levy Report which recognised the legalisation of settlement outposts, whilst Haaretz reports that Attorney General Yehuda Weinstein is unlikely to approve it on behalf of the government. The American government has rejected the report, and restated its position that Israeli settlements are illegal. According to Haaretz, which broke the story that Israel was to release Palestinian prisoners in an attempt to restart peace talks, Palestinian president Mahmoud Abbas has rejected the offer. Israel Radio news notes comments by European Commission president Manuel Barosso, who urged Israel to reach an agreement with the Palestinians. Yediot Ahronot reports on a worrying escalation in attacks on Israel from Gaza. Last night, the Yad Mordechai road junction came under fire from a 0.5 inch heavy machine-gun fired from within Gaza. This is the first time that terrorist groups have used such weapons to attack Israeli civilians. Israeli media this morning reports that the IDF has hit Hamas targets in Gaza in response. The Jerusalem Post notes the election victory of Mahmoud Jibril in Libya, who heads a liberal party.