Hamas has recently presented a list with the names of prisoners it wishes to see released in exchange for freeing Israel Defense Forces soldier Gilad Shalit. An Israeli source, who is involved with the negotiations, says the list has reached Israel. However, the problem is that Israel finds some of the names on the list unacceptable. Israel will agree to the release of some prisoners "with bloodied hands" (those who have participated in attacks in which Israelis were killed), but not necessarily to the senior figures Hamas is demanding.

It appears that an agreement has been reached on the number of Palestinian prisoners Israel will release in three stages, in exchange for Shalit's freedom.

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Israeli security sources confirmed last night that a "certain progress" was made in efforts to bring about the release of Shalit. The same sources noted that there are many complex obstacles in the way to completing the deal with Shalit's kidnappers and warned that the process may take time.

"Indeed, a certain progress has been made, but there is still a long way [to Shalit's release]," sources in Jerusalem said.

The sources also warned reporters that "you should not rely on reports originating among Palestinians because they may create unrealistic expectations."

In Israel there are also concerns of the potential difficulties those holding Shalit - members of Hamas' military wing and the various factions of the Popular Resistance Committees - could pose. The general attitude calls for caution, without putting great expectations into the enthusiastic declarations made by various Palestinian officials.

One of the main worries in Israel is that these officials are not in a position to decide Shalit's fate.

A likely problem that could have a negative effect on the negotiations revolves around the friction between Hamas' political and military wings in the Gaza Strip. The head of the military wing in the northern Gaza Strip, Ahmed Ja'abari, is responsible for a number of attacks and attempts along the border fence in recent weeks.

In practice the meaning of these attacks is that the military wing of Hamas has ceased to abide by the cease-fire, and this may result in a further escalation with Israel in the near future.

It also emerged in recent days that Fatah-affiliated security organizations have learned where the abducted BBC correspondent, Alan Johnson, is being held, but have avoided rescuing him out of fear that the operation will result in heavy casualties. His captors, according to the same sources, are members of the Darmush clan.

Meanwhile, an Israeli Arab, Jihad Ziara, was abducted on Friday in the Gaza Strip. Ziara, originally from the Gaza Strip, was visiting his first wife when gunmen kidnapped him.