Egyptian Foreign Minister Ahmed Aboul Gheit said Thursday that there had been significant progress made in talks for the release of abducted Israeli soldier Gilad Shalit.

The senior Egyptian official made these statements in an interview with the Arab satellite station, Al-Arabiya.

Egypt is waiting for a breakthrough on the matter of the Palestinian prisoners, Aboul Gheit said. He spoke of hundreds and even thousands of prisoners that could be released in an exchange agreement.

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Gilad Shalit was abducted during a Palestinian raid into Israel in June by militants believed to be affiliated with Hamas.

According to an Egyptian mediator who is now in the Gaza Strip, Egypt gave Israel and Hamas an offer that both sides were expected to consider. The same source added that if the offer was accepted by both sides, it would then be possible to commence talks on a mechanism for its implementation.

The Egyptian interlocutor said Egypt and Hamas had proposed that about 1000 Palestinian prisoners be released, parallel to Shalit's release.

Egypt proposes that groups of prisoners be released over time. This way, the release of prisoners will not only be considered a Hamas achievement. For example, if a group of prisoners is released after a future meeting between Prime Minister Ehud Olmert and Palestinian Chairman Mahmoud Abbas, the Palestinian leader will then also be able to claim some of the credit.

However, Palestinian Foreign Minister, Mahmoud al-Zahar of Hamas, said that in order for Shalit to be released, the Palestinian prisoners would also have to be freed
simultaneously.