By Maya Gebeily and Laila Bassam

BEIRUT (Reuters) -Lebanon's government is set to discuss a plan on Friday for disarming Hezbollah, a critical juncture in a standoff between the Iran-backed group which is refusing to give up its weapons and rivals who want it to disarm in line with U.S. demands.

Calls for Hezbollah's disarmament have taken centre stage in Lebanon since last year's devastating war with Israel, which upended a power balance long dominated by the Shi'ite Muslim group.

Despite mounting pressure, Hezbollah has rejected any move to dismantle its arsenal, leaving a deep divide between the group and its Shi'ite ally Amal on the one hand, and other Lebanese, among them leading Christian and Sunni politicians.

Friday's cabinet session takes place against a backdrop of an escalation in Israeli strikes in southern Lebanon, which killed four people on Wednesday, adding to fears in Lebanon of further attacks if Hezbollah does not disarm. The Israeli military said it targeted a site........

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