Galei Tzahal (Army Radio) reported early Friday morning that Ahmed Yousef, a senior aide to Palestinian Authority Prime Minister Ismail Haniyeh, stated Shalit will be released during the month of Ramadan.



Other reports indicate the Hamas leadership has approved a deal by which Shalit will be released in exchange for Israel releasing 1,000 terrorists. This deal, according to Galei Tzahal was vetoed by Hamas leaders in Damascus.



Another report aired on Israel Radio, quoting Arab media sources, states the Hamas leaders exiled from Israel have signaled a willingness to release Shalit in exchange for being permitted to return to PA-controlled Gaza. They are seeking Israel’s approval to permit terror kingpin Khaled Meshal into Gaza.



Official sources in Jerusalem continue to announce that efforts to obtain Shalit’s release are underway, stating Arab media sources are releasing disinformation. Prime Minister Ehud Olmert has denied the accuracy of media reports, stating “everything possible” is being done to obtain the release of Shalit, as well as IDF soldiers Ehud Goldwasser and Eldad Regev, who were taken captive by Hizbullah in July.



Back in Gaza, PA coalition government talks are not moving forward. Prime Minister Haniyeh is aware he needs PA Chairman and Fatah chief Mahmoud Abbas (Abu Mazen) in his government to enlist the support of the international community and thereby renew the infusion of donor nation funds into the PA.



Abu Mazen has made repeated announcements that Hamas must release Shalit as a prerequisite to a coalition government, but Meshal, the Hamas politburo leader currently based in Damascus, is maintaining his hard-line position, vetoing all calls for Shalit’s release.



Cairo is continuing attempts to mediate a deal for Shalit’s release. According to statements released by Egyptian Foreign Minister Ahmed Aboul Gheit, a deal that would have resulted in Israel’s releasing 900-1,000 prisoners was turned down.



There are conflicting reports regarding Egypt’s continued mediation role. Cairo has released official statements insisting Egyptiam President Hosni Mubarak has not abandoned his country’s mediation role, one that places him in a good light with the White House.



Popular Resistance Front terrorists in Gaza earlier in the week released a warning, that an increased Israeli military operation in Gaza would result in a heavy price: that Shalit would never be seen again.



The terror organization was responding to statements released by IDF Chief of Staff Lt.-Gen. Dan Halutz, who indicated a major ground forces incursion into Gaza is a possibility, both to locate Shalit as well as to bring a halt to the firing of Kassam rockets into the Sderot and western Negev areas.