Israel, Hamas near prisoner deal

JERUSALEM — Hamas leaders raced to Egypt on Monday amid signs of progress on a deal to swap hundreds of Palestinian prisoners for a captive Israeli soldier held by the Islamic militant group for more than three years.

The exchange could boost Hamas at the expense of its key rival, Western-backed Palestinian President Mahmoud Abbas, in part because one of the prisoners to be freed is Marwan Barghouti, his main challenger.

Officials on both sides cautioned against exaggerated optimism that a deal is about to be concluded. Even so, conditions for a deal appear to be ripening on both sides.

Israel and Hamas have been locked in on-again, off-again talks since Gaza militants tunneled into Israel and captured Sgt. Gilad Schalit in a 2006 raid that killed two other soldiers. Until recently, the Egyptian-mediated talks had made little progress.

Israeli Prime Minister Benjamin Netanyahu is eager for a breakthrough. Bringing Schalit home would give him a huge domestic boost and provide an important diplomatic victory at a time when much of the international community is criticizing him for not doing enough to promote peace.

Israel's ceremonial president, Shimon Peres, confirmed progress in the talks after meeting with Egypt's president Sunday in Cairo.

Hamas, the Iranian-backed militant group that controls Gaza, is also hungry for progress. Exchanging Schalit for hundreds of prisoners would provide a swift popularity boost for the militant group among Palestinians, who see the imprisonment of thousands of their countrymen in Israeli jails as one of their main grievances against Israel.

It could also help ease the group's deep international isolation and lead to a lifting of a bruising Israeli economic blockade. The embargo, imposed after Hamas seized control of Gaza in 2007, has prevented repairs of heavy damage inflicted by an Israeli military offensive nearly a year ago.

The recent involvement of German mediators, who enjoy the trust of both sides, also has improved the climate.

While previous attempts to reach a deal have repeatedly broken down, both sides have signaled they are serious.

Though no official statements have been made, it appears that Netanyahu is prepared to release more hard-core Palestinian militants than his predecessor, Ehud Olmert, fulfilling a key Hamas demand. He also is believed to have agreed to include some Israeli-Arab prisoners in the deal.