There are reports out of the Middle East that Israel and Hamas may be close to a deal for the exchange of Gilad Shalit, the Israeli soldier Hamas fighters captured three years ago, for hundreds of Palestinian prisoners.

Representatives of Hamas, the Islamist group that controls the Gaza Strip, are said to be meeting with Egyptian and German mediators in Cairo to firm up the list of prisoners Israel would release in order to free the member of the Israeli Defense Force.

According to a Reuters story:

Officials close to the talks said Israel agreed to include in the exchange for soldier Gilad Shalit some 160 prisoners whose release it previously vetoed. But both sides have publicly avoided comment or sought to play down talk of an imminent deal.

Shalit was captured by Palestinian militants who tunneled into Israel from the Gaza Strip in 2006. Israel has linked any major easing of its blockade on the territory to the soldier's return home.

 

"The Shalit episode is about to be closed," one of the officials said.

Sources on both sides told Reuters there were hopes that a deal might be struck by the end of the week, when the Muslim festival of Eid al-Adha begins. But one Hamas official sought to play down speculation that a deal was done.

"We stress that it is premature to talk about any results regarding the prisoner swap deal," Hamas official Sami Abu Zuhri told Reuters.

"The information about an imminent prisoner swap agreement is an Israeli leak that aims to influence the feelings of prisoners and their families and to put pressure and influence on the ongoing indirect negotiations."

In Jerusalem, Israeli government officials declined to comment on prospects for a deal with Hamas, a group that has rejected Western demands to recognize Israel, renounce violence and accept existing interim Israeli-Palestinian peace accords.

"The efforts to win Gilad Shalit's release are continuing and taking place outside the media spotlight. We have no intention of commenting beyond this," Israeli Prime Minister Benjamin Netanyahu's office said in a statement.

Israel released 20 Palestinian prisoners in September in exchange for a proof-of-life video of Shalit.

On Monday, Prime Minister Benjamin Netanyahu said the terms behind any exchange would be publicly aired.

According to an article on the Haaretz website:

"There will be a public discussion and there will be a discussion in the Knesset on the matter, which requires the government's approval," Netanyahu told Likud lawmakers on Monday. "There is still no discussion in the [Likud] faction or in the government because there is still no deal and, as such, there is still no decision."