Prisoner swap talks make progress according to Arab media reports

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Palestinian sources say there is reason to believe that significant progress has been made in talks on a prisoner swap between Hamas and Israel, the pan-Arab daily Asharq al-Awsat.

Sources told the paper that both sides have presented serious proposals and that Hamas has shown newfound flexibility on the issue of relocating West Bank Hamas members to Gaza.

As part of a prisoner exchange for captive soldier Gilad Shalit, Israel is demanding that Hamas agree to absorb prisoners into Gaza rather than allowing them to return to their homes in the West Bank.

The negotiations, which are being mediated by Egypt, have been stalled since Prime Minister Benjamin Netanyahu took over the reins of power from his predecessor, Ehud Olmert.

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