Several Arabic-language newspapers are reporting that Israeli envoy Ofer Dekel met Sunday with German mediators to discuss a "final offer" from Israel on a prisoner swap deal for the return of kidnapped IDF reservists Ehud Goldwasser and Eldad Regev. The two were kidnapped in a cross-border raid by Hizbullah terrorists that ignited the 2006 Second Lebanon War on Israel's northern border.



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The Lebanese daily Al-Akhbar quoted sources at the United Nations as saying that the deal with Hizbullah terrorists, negotiated by Gerhard Konrad, could be finalized as early as this week. The Lebanese As-Safir newspaper also claimed the swap could take place shortly, between June 20th and 25th.

A third Arabic newspaper, the Saudi-owned ash-Sharq il-Awsat, also reported that a deal appears imminent, saying the family of jailed Lebanese terrorist Samir Kuntar, serving four life sentences in an Israeli prison, has begun making preparations for his return.

Prime Minister Ehud Olmert is expected to meet with the families of Goldwasser and Regev by the end of this week to discuss the matter, as well as the family of missing IAF navigator Ron Arad, whose aircraft was shot down over Lebanon in 1986.

Kuntar, convicted for leading a brutal attack on Nahariyah in 1979 which resulted in the murder of >>four Israelis, two of whom were toddlers, was being held as a bargaining chip to be swapped in exchange for Arad. However, Israel has reportedly now offered to swap Kuntar and four other terrorists for the return of Goldwasser and Regev, following notification from Hizbullah head, Sheikh Hassan Nasrallah, several months ago, that he is unable to find out any further information about the fate of Ron Arad.

"Ofer Dekel told us, speaking generally, that there is going to be a deal -- and that's it," said Regev's father Tzvi in an interview on Voice of Israel government radio. He added, however, that no one really knows whether his son and his fellow reservist are still alive, or what condition they are in.

"Actually no one knows. If they received treatment [after the attack in which they were kidnapped], they survived; if  they didn't -- then we just hope they did, and it appears that Udi (Goldwasser) and Eldad are returning... We are aware of the worst [case scenario] but we hope for good tidings in any event," said Regev's father.

Benny Regev was more cautious about raising expectations of any impending deal to free his brother, however, warning there was no concrete proof that such talks were taking place.

"My father was not being accurate," he was quoted as telling Reuters news service. "We understand that we are in the direction of a deal. That's not to say it is a deal right now."