A senior Egyptian official on Thursday said the third round of indirect talks between Israel and Hamas over a prisoner exchange that would free abducted Israeli soldier Gilad Shalit has deadlocked, according to a report in the London-based Arabic daily Al-Hayat. The newspaper, which has been reporting all week on the mediated talks between Israeli and Hamas negotiators, also reported that no new date has been set for the continuation of negotiations as the two sides have become intransigent. This comes despite reports earlier this week that Israel had softened its stance regarding which prisoners would be freed and how many would be deported outside the West Bank upon their release. Egypt has been mediating talks between Israel and Hamas for a prisoner deal that would see the release of Shalit, who was captured in a cross-border raid in June 2006, in exchange for about 1,000 Palestinians held in Israeli jails. Negotiations have stalled over which prisoners Israel has agreed to release. Hamas is demanding that the prisoners include some high-profile security prisoners, including convicted terrorists and Fatah leader Marwan Barghouti, who is serving five life sentences for his involvement in terror attacks. The Egyptian official told Al-Hayat that Cairo would continue to work to formulate solutions that would bridge the gaps between the parties and allow a deal to be reached. Hamas's political bureau chief, Khaled Mashaal, who traveled to Cairo this week, met on Wednesday with tEgyptian intelligence head General Murad Muwafi, Foreign Minister Mohammed Amr and Muslim Brotherhood leader Mohammed Badia to discuss the latest round of talks with Israel. However, a report in the Egyptian newspaper Al-Mesryoon quoted senior Egyptian officials involved in the indirect talks as saying that Israel had agreed to reduce the number of prisoners who would not be allowed to return to their homes in the West Bank from 150 to 80. The officials said Israel had also agreed to include security prisoners in the deal, along with residents of East Jerusalem, which it had previously opposed. The Egyptian official told Al-Hayat, Each side is trying to get the best deal it can, and when parties are negotiating, they each have their public and its response in mind. The officialsaid each side had to be willing to compromise. Israel has not issued an official response on the negotiations, and the Prime Minister's Office refused to comment on the recent reports. However, Homefront Defense Minister Matan Vilnai referred to the reports of progress, telling Army Radio on Wednesday, Every once in a while rumors such as these crop up and we must continue to treat them as such. But he did suggest that progress was being made, saying, We've reached a breakthrough now that Hamas understands it must end this affair. He also said, You have to remember the meaning of releasing the terrorists while continuing to negotiate. Senior Hamas official Osama Hamdan said progress was being made in the indirect talks, while other Hamas officials were trying to temper enthusiasm about a possible breakthrough. The officials said Mashaal's arrival in Cairo was unrelated to the Shalit case, saying that he was there to discuss extraditing terrorists who had fled from the Sinai Peninsula to Gaza. .
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'Talks deadlocked between Israel and Hamas on Shalit deal'
London-based Arabic daily Al-Hayat reports that the third round of indirect negotiations over a prisoner exchange has been postponed indefinitely • Egyptian newspaper says Hamas chief Khaled Mashaal's arrival in Cairo is unrelated to Shalit case.