Palestinians, Israel close to prisoner-swap deal

The optimism emerged with news that powerful Hamas politburo chief, Khaled Meshaal, was expected soon in Egypt for talks on the matter with Egyptian officials who have been the main broker in the crisis.

The soldier's release is linked to "Israeli responses to Palestinian demands and I think there is progress as the Egyptian brothers told us. They are the ones following the matter," Haniya told AFP after Friday prayers.

Nevertheless the premier, head of the Hamas-led government boycotted by Israel and the West, said he had no details about Meshaal's visit to Cairo.

"There is no more information on Khaled Meshaal's visit but contacts with the Egyptian brothers have not been interrupted," he said.

Hamas has demanded the release of some 1,000 Palestinians held in Israel in exchange for Corporal Gilad Shalit, whose capture sparked a prolonged Israeli offensive in Gaza where more than 250 Palestinians have since been killed.

An Israeli cabinet minister earlier expressed cautious optimism about the prospect of securing Shalit's release. He was seized in June by Gaza-based militants, including those from the armed wing of Hamas.

"Being aware of all the details concerning this affair, I prefer to keep quiet. I became optimistic during my recent visit to Cairo and that I remain," Infrastructure Minister Benjamin Ben Eliezer told army radio.

Meanwhile, three Palestinians were killed by Israeli forces near the city of Jenin in the occupied West Bank on Friday, local medical sources said.

Fadi Sabah, 24, a militant from the radical Islamic Jihad faction, and Mustapha Abu Zalat, 17, a member of a group linked to the Fatah party of Palestinian president Mahmud Abbas, were killed at Al-Fara, the sources said.

The third Palestinian, Ahmed Abu al-Hassan, 25, was killed at Al-Yamoun.