Gaza City:
Israel and Hamas are close to a deal to swap 1,000 Palestinian prisoners for an Israeli soldier held for more than three years by the Islamic militant group, a Palestinian familiar with the talks said on Monday.
Israeli President Shimon Peres, who met with Egypt's president in Cairo yesterday, confirmed progress in the negotiations to free captured soldier Sgt Gilad Schalit, but Israeli officials refused to comment further.
Hamas' deputy political leader, Moussa Abu Marzouk, also said "there is progress" in the talks.
Neither Peres nor Abu Marzouk gave details on the timing of a possible deal.
The Palestinian close to the talks said Palestinian prisoners would be released in two stages. The initial batch is expected to include many serving lengthy sentences for deadly attacks on Israelis.
Among them would be Marwan Barghouti, a popular leader of Hamas rival Fatah, who is serving multiple life sentences for involvement in deadly attacks. Barghouti is seen as a top contender for the next Palestinian president.
While negotiations have been dragging on for years, conditions appear to be ripening for a deal. Israel appears to have dropped its objections to key Hamas demands, while Hamas also has shown flexibility on some important issues, particularly Israel's insistence that some prisoners be deported after their release.