Olmert met with Israeli Defense Minister Amir Peretz and senior defense officials, and afterward issued a statement authorizing Israeli troops to take "pinpoint action" against rocket launching sites in Gaza, The Jerusalem Post reported.
"At the same time, Israel will continue to abide by the cease-fire," the statement said.
Hamas government spokeswoman Ghazi Hamad denounced the military response authorization but said, "We still believe that this agreement is alive."
Not long after Olmert's statement, a Palestinian rocket was fired from Gaza toward the Israeli town of Sderot, but no injuries were reported.
Abu Hamza, a spokesman for Islamic Jihad, said the rocket fire was a response to Israeli arrests of operatives in the West Bank, which is not covered by the truce.
Millions of Getty images now available for free via embed tool
Boston schools pull out free condoms over wrapping complaints