Alleged Israeli 'spy' Ilan Grapel met Friday with a United States Embassy representative as his indictment in Cairo looms large on the horizon.

After the meeting, Egypt's al-Ahram newspaper reported that the US Consul in Cairo told them Grapel was in "big trouble." The report comes as Egyptian sources close to the case said an indictment is probably due next week.

The newspaper, which continues to insist Grapel is an Israeli spy also reported that Grapel "sent emails to the Mossad from a number of coffee shops."

The newspaper went on to claim Grapel sought to extend his stay in Egypt by writing on his visa request that he was a Muslim who came to Egypt to study.

Early last week Egyptian media outlets reported Grapel had admitted to serving in the IDF for two years and three months, but firmly denied that he worked for the Mossad.

Many among the Egyptian media and educated elite are dubious of the charges against Grapel.

On Thursday Grapel met with the Israeli Consul in Egypt. The Foreign Ministry said that the Consul felt Grapel was holding up well.

Embassy representatives in Cairo informed Egyptian prosecutors they would continue to act for Grapel's release.