Israel denies Shalit's release is imminent

JERUSALEM, June 2 (UPI) -- The Israeli Prime Minister's office has denied reports from Cairo that a deal had been reached and the release of captive soldier Gilad Shalit is imminent.

Shalit, captured by Islamic militants in June 2006 in a cross-border raid, has been held captive in the Gaza Strip ever since his abduction.

Responding to reports in the Egyptian newspaper al-Mesryoon claiming a prisoner swap was imminent, Prime Minister Binyamin Netanyahu's office issued a statement Thursday saying "negotiations on Gilad Shalit are continuous and intensive, but there is no breakthrough in the matter," The Jerusalem Post said.

Former Egyptian ambassador to Israel Mohammed Bassiouni told the Egyptian newspaper that a prisoner swap deal had been finalized between Israel and Hamas, Ma'an news agency said.

Bassiouni said points of contention between the sides had been ironed out, but failed to release further details saying an announcement would be made "within hours," the agency said.

Amos Gilad the director of the Israel Defense Ministry's Diplomatic-Security bureau currently in Cairo for talks with Egyptian officials on the Rafah border crossing and Shalit, will oversee the release of Palestinian prisoners, the Palestinian news agency said.

Israel has insisted in the past that Palestinians prisoner to be released in such a swap be sent to Gaza or abroad with only a few being permitted to return to the West Bank.