Channel 10's military correspondent said Tuesday evening that government insiders say that the Olmert regime is leaning toward a deal with Hamas rather than launching a military operation in Gaza.

Prime Minister Ehud Olmert and Defense Minister Ehud Barak have been making almost daily statements about the proximity of a widespread operation in Gaza.

If Channel 10 is correct, it would mean that the threat of operating in Gaza is a means of leveraging the government's negotiating position vis-a-vis Gaza's ruling Islamist Hamas regime.