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Indictments in the CIA leak investigation case are expected to be handed down by a grand jury on Wednesday, bringing to a head a criminal inquiry that threatens to disrupt seriously President George W. Bush's second term.

On Tuesday night, news reports, supported by a source close to the lawyers involved in the case, said that target letters to those facing indictment were being issued, with sealed indictments to be filed on Wednesday and released by the end of the week.

Those in legal jeopardy may include Lewis Scooter Libby, vice-president Dick Cheney's chief of staff, and Karl Rove, Mr Bush's chief political strategist.

Mr Cheney himself has also been linked to the inquiry into the leaking of the name of an undercover CIA operative, according to a story in Tuesday's New York Times.