Israel's cabinet is meeting to decide whether to approve a deal on a prisoner exchange with Hamas militants.
Benjamin Netanyahu and six ministers are expected to decide today whether to swap 1,000 Palestinian prisoners for an Israeli soldier who has been in captivity in the Gaza Strip for more than three years.
Sgt Gilad Shalit, 23, was abducted by Hamas-affiliated militants. Israel has been reluctant to meet Hamas' demand to release dozens of Palestinians involved in deadly attacks on Israelis, and Egyptian-mediated talks have failed to produce a swap deal.
Israel's inner cabinet convened last night for the third time yesterday amid reports that ministers were divided on whether to accept a prisoner swap deal under which Israel will release 980 Palestinian prisoners in return for Gilad Shalit.
It was reported that if a clear majority of the seven-member inner cabinet back the terms of the deal, Prime Minister Binyamin Netanyahu would bring the proposal to the full cabinet, where it is expected that ministers would endorse the deal.
Strict censorship is in force in Israel preventing publication of any details of the proposed deal, but it is believed that Hamas is insisting on the release of dozens of hard-core militants who have participated in, or helped plan, fatal attacks on Israelis.
Egyptian intelligence minister Omar Suleiman, who spent months mediating between Israel and Hamas, was in Jerusalem yesterday and held discussions with Israeli leaders.
Earlier this year, German diplomat Ernst Uhrlau assumed the task of the main point man in the negotiations, in an effort to get the sides to agree on which prisoners would be released, and who on the list would be allowed to return to their West Bank homes.
Israel insisted that some of the detainees would be forced into exile, either to Gaza or abroad.
Palestinian president Mahmoud Abbas said over the weekend that Mr Uhrlau had given the sides a two- to three-week deadline to agree on the terms of a deal before he gave up on mediation efforts.
Alarmed by a Fox News television report which claimed that Mr Netanyahu was reluctant to sign a deal presented to him three weeks ago, the parents of Gilad Shalit yesterday delivered an urgent letter to the prime minister urging him to save their son.
"Our hearts tell us that the negotiations have reached a point of no return . . . We are at a crossroads that has only two possible outcomes – the rescue of Gilad Shalit and his safe return home, or leaving his fate in the hands of Hamas," Noam and Aviva Shalit wrote.
The Shalits, who are scheduled to meet Mr Netanyahu today, urged the government "not to repeat the tragedy of Ron Arad", the Israeli air force navigator held by Lebanese militants who died in captivity.
Hamas politburo member Azat al-Ghashek said yesterday the German mediator would deliver Israel's answer within days. He said Hamas insisted on the release of "senior operatives" held by Israel, adding: "Shalit won't see the light of day until Israel meets all of our demands."
Additional reporting: AP