BREAKING: NETANYAHU CLOSE TO DEAL WITH HAMAS TO FREE SHALIT, REPORTS AN ISRAELI NEWSPAPER FOR FIRST TIME

Netanyahu close to deal with Hamas to free Shalit

Prime Minister Benjamin Netanyahu is close to concluding a deal with Hamas to free abducted soldier Gilad Shalit, Haaretz has learned.

At the end of former prime minister Ehud Olmert's term in March, Israel had refused to release 125 of the 450 prisoners Hamas was demanding in exchange for Shalit - those who committed the most serious offenses.

The two sides had also disagreed over how many prisoners from the West Bank would be sent to the Gaza Strip or abroad after their release.

However, observers now report cautious optimism on both sides about the chances of concluding a deal.

Hamas needs an achievement

Palestinian commentators said Hamas now appears interested in signing a deal: Hamas needs an achievement, given its defeat in the Israeli military offensive in the Gaza Strip in January, Gaza's stalled rehabilitation and especially its diminishing status versus Fatah in Palestinian public opinion.

Recent Palestinian public opinion surveys give Fatah a 16-percent advantage over Hamas, should a vote occur now.

The most biggest potential breakthrough for Hamas would be a deal freeing 450 prisoners jailed for severe crimes, whom Fatah has so far failed to release.

Egyptian President Hosni Mubarak last week disclosed Germany's involvement in the mediation. The Germans have the advantage of being considered honest brokers, as a party outside the region, Mubarak said.

[link to www.haaretz.com]