Israel is ready to contemplate the release of Marwan Barghouti, the former leader of the Fatah-affiliated Tanzim militia who was convicted for the murder of five Israelis during the Al-Aqsa intifada, as part of a possible deal for captive Israel Defense Forces soldier Gilad Shalit, the London-based pan-Arab daily newspaper Al-Hayat reported in Wednesday editions.

The newspaper reported that the government would condition Barghouti's release on his expulsion from the West Bank.

According to the report, the German mediator involved in the negotiations between Israel and Hamas will propose that Israel reduce the number of prisoners it will demand be relocated from the West Bank in the event of any deal.
The mediator will also propose that Israel release a number of Palestinian leaders currently serving sentences in jail, Al-Hayat reported on Wednesday.

Meanwhile, Al-Hayat reported on Monday that Israel would free 17 prisoners from East Jerusalem as part of the deal with Hamas.

Ten of those prisoners will be exiled once released, according to the report.

The differences between Israel and Hamas reportedly hinges on 50 prisoners, among a list of 450 names, which Israel refuses to free.

Al-Hayyatreported on Monday that Israel is also not prepared to release five women prisoners who were sentenced to life terms.

Hamas Interior Minister Fathi Hamad said on Monday that his organization is working on the assumption that the deal to free Shalit will be carried out within two weeks.

Al-Arabiya television reported that the German intermediary in the case arrived in Gaza on Tuesday to provide Israel's latest response on the Shalit case.

According to the report, the mediator will meet with Hamas representatives, but will only receive their response following consultations between Hamas leadership in Gaza and Damascus.

Gilad Shalit's parents, Noam and Aviva, on Monday continued their round of meetings with cabinet ministers that they had begun last week in an effort to convince them to vote in favor of a deal for their son's release after three years in Hamas captivity.

Officials at the campaign to free Gilad Shalit continue to maintain their media blackout.