Negotiators in Cairo for intensive Shalit talks

Israel on Saturday told Hamas that Sunday night is the deadline for reaching an agreement on a prisoner exchange that would free abducted Israel Defense Forces soldier Gilad Shalit.

"There are still divisions, but we are making a final attempt to bridge them," said a source close to the negotiations.

A senior official at the Prime Minister's Office said this is a last-ditch effort before a new government takes power in Israel.

The official added that on Tuesday, Prime Minister-designate Benjamin Netanyahu will present his coalition agreements to the Knesset for approval.

"There has not yet been a breakthrough as we would have liked," said the official. "This is a final attempt. There is still time to reach a deal by Sunday."

It appears that with the help of Egyptian mediators, Israel and Hamas have reached agreement on a large number of Palestinian prisoners that the group would like released in return for Shalit. However, there are still names of prisoners pending and there is also no final agreement on the security arrangements in the deal.

Noam Shalit, Gilad Shalit's father, on Saturday said that despite apparent progress, his family remains cautiously hopeful. "We won't be encouraged until we see concrete results," said Shalit.

Shalit also told Hamas that it should accept a deal, because it won't get a better offer from the right-wing government that appears to be forming.

Outgoing Prime Minister Ehud Olmert on Saturday evening dispatched Shin Bet Director Yuval Diskin and negotiator Ofer Dekel to Egypt for another attempt to reach a deal to free Gilad Shalit.

The two are expected to stay in Cairo until Sunday evening and will meet with Egyptian Intelligence officials involved in the negotiations to try and advance a prisoner swap, according to a statement issued Saturday by the Prime Minister's Office.

On Monday, a special cabinet meeting will convene to update ministers about what progress has been made in the negotiations.

Netanyahu was briefed by Olmert on developments over the weekend.

Yoel Shalit, the older brother of Gilad Shalit, said earlier on Saturday that the negotiations have reached a critical stage, and that he hopes his family's efforts to secure Gilad's release have not come too late.

"I do not want to think about the possibility that we waited too long," Yoel Shalit, 25, told Channel 2 in an interview Saturday. "What's important is what is happening today, and not what we have done until now."

He added, "I worry about the day that Gilad will return and about what his condition will be, but I believe he is strong enough to get through this."

Shalit's family and supporters have in recent days put increasing pressure on Olmert to reach a deal before he leaves office.

Shalit's family on Friday evening gathered at the protest tent pitched across from Olmert's Jerusalem residence, and held a Shabbat dinner, with Gilad's photo displayed above an empty chair around the table.

Shalit was kidnapped by Gaza militants in a cross-border raid in June 2006. Hamas, the rulers of the Gaza Strip, have demanded the release of hundreds of Palestinian prisoners in exchange for Shalit's release.