Chee Soon Juan, leader of the Singapore Democratic Party, could not be reached for comment.

According to the report, Chee filed a lawsuit on Saturday charging Lee, the island's first premier, who still wields significant influence in the government, with defaming him in the run up to the November 3 general elections.

Chee said Lee had called him a "political gangster, a liar and a cheat".

Chee is also facing a defamation suit filed by Prime Minister Goh Chok Tong.

Both Goh and Lee filed claims for aggravated damages from Chee after the opposition leader alleged during the campaign for the elections that the two leaders had lent S$17 billion (US$9.2 billion) to ousted Indonesian leader Suharto.

Goh said the money was never disbursed to Indonesia as the loan, offered during the 1997-98 Asian financial crisis, had conditions attached and was not taken up by Suharto, who was overthrown in May 1998.

Chee subsequently made a public apology and admitted making a false accusation during the campaign for the November 3 general elections, which were won overwhelmingly by the ruling People's Action Party (PAP).

In his court papers, Chee now said "any apology or compromise" made "was null and void" and was the "product of duress and intimidation."

The High Court is scheduled to hear Goh's and Lee's applications for damages on January 14.

Leaders of the ruling party over the years have won millions of dollars in lawsuits from opposition politicians who questioned their integrity.

The PAP won 82 of the 84 seats in the last elections, extending its unbroken rule since 1959 by another five years.

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