"The reports are incorrect and it's possible they are even causing damage," Israeli Defense Minister Ehud Barak told reporters on Sunday, denying reports of an imminent deal with Hamas for the release of Israeli soldier Gilad Shalit in exchange for Palestinians Authority terrorists held in Israeli jails.

Citing European diplomats, Israeli media said on Thursday that Shalit was about to be sent from his Gaza captivity to neighboring Egypt as part of a possible lead up to a prisoner swap.