Hamas is prepared to sign a deal next week for the release of abducted Israel Defense Forces soldier Gilad Shalit as part of a long-term truce agreement between Israel and the Gaza Strip, Israeli newspaper Haaretz quoted Arab media.
Hamas will cement the truce within the next few days and finalize the deal to free Shalit by Wednesday.
Arab media reported that Shalit, who was captured by Hamas-allied militants in a 2006 cross-border raid from Gaza into southern Israel, would be freed in exchange for 1,000 Palestinians jailed in Israel. The deal would include the release of women and children, as well as a number of Palestinian lawmakers and ministers.
Egypt has been trying to broker a prisoner exchange between Israel and Hamas, which is holding Shalit. Cairo's negotiator, Omar Suleiman, told the Egyptian newspaper Al-Ahram on Friday that Israel is refusing to allow iron, aluminum and cement into the Gaza Strip until the deal for Shalit's release has been reached.
Suleiman also said that Egypt has rejected Israel's offer to release jailed Palestinian residents of the West Bank into the Gaza Strip, insisting that they be returned to their homes.
Cairo will meet next week with Israel over Hamas' response to the Egyptian truce proposal, the negotiator added.
There are still four obstacles preventing the deal from being finalized: ongoing Qassam fire, the construction of a barrier between Gaza and Israel, Hamas' commitment to observe the truce, and the halt of weapons smuggling into the Gaza Strip.
Israel had no comment on the reports.
Israel's envoy to the talks, senior defense official Amos Gilad, is expected to return to Cairo, possibly on Saturday night.
Meanwhile, a unilateral agreement signed by Israel on Jan. 18 after a 22-day offensive leaving 1,300 Palestinians dead is valid in Gaza.