"The negotiations depend on the Egyptians," an official told The Jerusalem Post.

Israeli officials fear Hamas might demand more for the return of Sgt. Gilad Shalit because of the terms of the exchange with Hezbollah. Israel released five Lebanese prisoners -- including one who killed a young child, her father and a police officer in 1979 -- in return for the bodies of two kidnapped Israeli soldiers.

"Hamas considers the deal with Hezbollah an honorable achievement for the Lebanese resistance," Abu Obaidah, a Hamas spokesman, said. "This deal also proves that Israel's criterion for releasing (security) prisoners has been shattered. In the past, Israel refused to free prisoners serving lengthy sentences."

Ofer Dekel, a former deputy chief with the Israeli security service Shin Bet, is expected to go to Cairo to continue the talks with Hamas.