By Ruth Pollard in Cairo
After what negotiators have described as 64 long months of talks, the Israeli Government confirmed early on Wednesday that a deal has been reached with Hamas for the release of 25-year-old soldier Gilad Shalit, in exchange for about 1000 Palestinian prisoners.
Shalit, who was kidnapped by Hamas in a cross-border raid on 25 June 2006, and is believed to have been in Gaza since, has been a key source of friction between Israel and the Palestinians, and his release has reportedly been imminent many times.
Negotiations were taking place in the Egyptian capital, Cairo, overseen by Egypt's intelligence chief General Murad Muwafi, the Israeli newspaper Haaretz reported.
In a televised address following a cabinet meeting to approve the deal, Israel Prime Minister Benjamin Netanyahu said: "We have concluded arduous negotiations with Hamas to release Gilad Shalit. He will be coming home in the next few days."
At least 6000 Palestinians are being held in Israeli prisons - some convicted of crimes, but many also bring held for extended periods of time without charge.
AP reports that Hamas' supreme leader, Khaled Mashaal, confirmed the deal in Damascus, saying a total of 1027 Palestinian prisoners would be freed in two phases. He said Israel would free 450 prisoners within a week, with the remainder released in two months.
"This is a national achievement for the whole Palestinian people. All are struggling, nationalists and we all have sacrificed," he told a news conference.
Several Hamas officials said the leader of a Palestinian faction, Ahmed Saadat, and the most prominent prisoner, former Fatah leader Marwan Barghouti, would be included in the deal.
Mashaal said he was pained not to be able to release the thousands of remaining prisoners held by Israel.
- with AP