Israel has accused Syria of involvement in the suicide bombing in Tel Aviv in which four Israelis were killed, while the Palestinian militant group, Islamic Jihad, said they had carried out the attack.
The claim and Israeli accusation followed the release of a video showing a man known as a member of Islamic Jihad saying he was carrying out a suicide attack in response to what he termed Israeli killings and destruction of homes.
The group had joined a month-long cease-fire but a spokesman in Damascus said Israel had not honoured that truce.
'We have proof directly linking Syria to this attack', Israeli Defence Minister Shaul Mofaz said during a meeting with security officials in Tel Aviv.
Syria has strongly denied the accusation.
Seven people have been arrested in connection with the bombing which killed four people and injured about 30 outside a nightclub.
Five have been detained by the Israeli security forces and two by Palestinian policemen.
The Palestinian Authority immediately condemned the bombing, while its leader, Mahmoud Abbas, warned that those responsible for it would be brought to justice.
'They are saboteurs but we will not allow anybody to sabotage' the peace process, said Mr Abbas.
