Hamas said Wednesday that the Israel Defense Forces operation in northern Gaza would have a "negative influence" on negotiations being brokered by Egypt to try to arrange an exchange of Palestinian prisoners held in Israel for the release of captured IDF Corporal Shalit.

A Hamas delegation arrived in Cairo on Tuesday for talks with Egyptian officials on the deal that would see the release of Shalit, captured in June by Gaza-based Palestinian militants.

"The release of the Israeli soldier will only come after the enemy fulfils the conditions set by the captors," said Ismail Rudwan, a Hamas spokesman, referring to demands to free more than 1,000 Palestinian prisoners.

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Meanwhile, Israeli Arab lawmaker Ahmed Tibi (Ra'am-Ta'al) said Wednesday that there were still substantial differences between Israel and Hamas on the terms of the deal for Shalit's release.

Speaking to Israel Radio from Cairo, where he met Wednesday morning with Egyptian Foreign Minister Ahmed Aboul Gheit, Tibi said that there was a good chance of reaching an agreement soon, but some more time was needed.

Egypt has stepped up pressure on Hamas to complete the swap of Shalit for Palestinians in Israeli jails and to recognize Israel - moves Cairo believes could help resolve the deepening political crisis in the West Bank and Gaza, officials said Tuesday.

A delegation of Hamas leaders arrived in Cairo on Tuesday for talks with Egyptian officials.

A top Hamas leader, however, cast doubt on Israel's readiness to free Palestinians in exchange for Shalit.

Imad Al-Alami, the group's representative in Syria and former envoy to Iran, met Tuesday with senior Egyptian intelligence officers, but no progress was apparently made, officials said.

"There is nothing new. It was not what was expected, nor what is required," said one official.

Earlier Tuesday, Hamas indicated that it could be flexible on the timing of the release of Palestinian prisoners by Israel.

"The moment Shalit is freed or released to a third party, Israel must free a great number of Palestinian prisoners and then the rest can be released in a short time afterwards upon strict and accepted guarantees," he said.

"Freed prisoners must include those who spent long terms in jail ... Israel will not be left alone to decide who would be freed," he added.

Izzat al-Rishq also said that the arrival of exiled Hamas political leader Khaled Meshal in Cairo for negotiations on a prisoner swap and on a Palestinian unity government would depend on the progress of the talks.