JERUSALEM - President Moshe Katsav agreed to resign by signing an unexpected plea bargain Thursday that includes no jail time, ending a year-long investigation into allegations of sex crimes by the ceremonial leader.

The agreement, in which rape allegations were dismissed and Katsav admitted only to lesser charges of sexual harassment and obstruction of justice, was widely seen as a victory for him. His accusers and women's rights activists condemned the deal.

The announcement by Attorney General Meni Mazuz brought an abrupt end to a sordid case that captured the public's attention, painting a man known for decades as a harmless politician as a predatory boss who repeatedly took advantage of his female employees.

In the space of a year, Katsav sank from being "Israel's No. 1 citizen to a convicted sex offender," Mazuz told a news conference.

Katsav is only one of several high-level officials -- including Prime Minister Ehud Olmert -- who recently have been implicated in scandals.

The president, whose seven-year term was due to end next month, planned to formally resign later Thursday, said his spokesman, Ronen Tzur. Katsav suspended himself in January to fight the charges.

Parliament Speaker Dalia Itzik continues as acting president until July 15, when elder statesman Shimon Peres takes over.

Katsav, who had always proclaimed his innocence, agreed to the plea bargain "after the smear campaign of the past year, and in order to spare his family the pain" of a prolonged legal process, Tzur said.

The deal marked a dramatic reversal by Mazuz, who announced plans in January to indict Katsav for far graver charges of rape and sexual misconduct.

Instead, Katsav will plead guilty to sexual harassment, indecent acts and harassing a witness, Mazuz said. He also will pay damages to complainants and receive a suspended sentence.

Mazuz said the deal came at Katsav's request and was finalized just moments before Thursday's news conference. He explained that some of the allegations would have been difficult to prove in court.

Mazuz also said he took into consideration the damage a prolonged trial would have caused to "the national institution of the presidency and the image of the state of Israel." Although the position is largely ceremonial, the president is expected to set moral standards and help unify the country during times of trouble.

Kineret Barashi, attorney for one of the complainants, said Katsav received special treatment.

"There is no public interest in reaching a plea bargain and reducing his sentence just because we're talking about the president, and only because we're concerned about how we'll look to the world," she told Channel 2 TV.

Katsav, who immigrated to Israel from Iran as a child, began his political career in a poor town in Israel's south, worked his way up to a back-bench position in the hard-line Likud party, and later became a Cabinet minister. Considered a political lightweight, Katsav stunned Israelis when parliament elected him President seven years ago, delivering a stinging defeat to Peres.

Allegations against Katsav first surfaced a year ago, and his accusers eventually included four women who worked with him in the president's office and earlier, when he was tourism minister.

At Thursday's press conference, Mazuz acknowledged that allegations from several other women could not be pursued because they fell under the statute of limitations.

Miriam Schler, of the Rape Crisis Center in Tel Aviv, called the deal a "travesty."

"Basically, it gives a message to women who were raped and attacked or sexually assaulted by men in positions of power that it's better for them to sit at home and be quiet and not tell anyone about it because it's not worth it for them to actually file a complaint with the police," Shler said.

In May, Mazuz allowed Katsav's attorneys to appear before him at a hearing to plead their case, a customary practice in cases involving senior officials. At that hearing, new evidence was presented, Mazuz said Thursday. He gave no further details.

Following a furious diatribe at a news conference where he accused the media of being on a witch hunt, Katsav stepped aside in January to fight the allegations, but did not quit. Itzik has served as acting president since then.

Peres, who lost to Katsav in 2000, was elected earlier this month to the presidency. The 83-year-old Nobel peace laureate had no comment on Thursday's plea bargain.

Olmert has been accused of corruption in connection with several real estate and business deals transacted before he become prime minister.

Former Justice Minister Haim Ramon, an Olmert ally, lost his job earlier this year and was convicted of an indecent act for forcibly kissing a female soldier.

Finance Minister Avraham Hirchson, a longtime Olmert friend, is under investigation in an embezzlement case and has suspended himself from office.

And a powerful lawmaker and Olmert ally, Tzahi Hanegbi faces charges of fraud, bribery and perjury in connection with appointments he made as a Cabinet minister.