"We find the accused guilty of the charge of an indecent act," said Hayuta Kohan, chief justice of the three-member panel.

The verdict in the case -- one of a spate of scandals involving senior Israeli officials -- has been eagerly awaited in Israeli political circles as it will have direct implications on Olmert's teetering coalition.

Ramon, a close political ally of Olmert and one of the founders of Kadima, was accused of forcefully kissing a female soldier at a party last July 12, the day Israel launched a war against Lebanon's Hezbollah.

He resigned in August following the accusations and the justice portfolio is being temporarily handled by Foreign Minister Tzipi Livni, the most popular minister in the government and Olmert's official number two.

"After examining and studying the evidence, we find the complainant's version to be true," the ruling said. "The defendant did not stick to the truth and thought to distance himself from his actions. In view of this, we rule that the complainant did not flirt with the accused."

The 56-year-old Ramon faces a maximum sentence of three years in prison. He has 45 days to appeal.

"In the event that Ramon is found guilty there will be a significant reshuffle in the government aimed at strengthening the coalition," a senior official in Olmert's centrist Kadima party told AFP prior to the ruling.