A deal for the release of abducted Israeli soldier Gilad Shalit is close to completion, according to the London-based Arabic newspaper Al-Hayat. The newspaper reports that gaps between Israel and Hamas have been significantly reduced.

According to the report, Israel has agreed in principle to release 400 Palestinian Authority security prisoners who were given long sentences for murdering or wounding Israelis. Israel still refuses to release Israeli Arabs and residents of eastern Jerusalem.

Kol Yisrael government radio reports that Hamas has agreed to a compromise, under which a number of the released terrorists will be deported.