Israel also vowed to hunt down the killers of a kidnapped 18-year-old, whose
body was found Thursday in the West Bank with a gunshot wound to the head.
Hamas-linked militants said they killed him.
Abbas, a moderate, met with Prime Minister Ismail Haniyeh of Hamas and spoke
twice with Mubarak to try to end the crisis, an Abbas aide said.
In remarks published Friday, Mubarak told the pro-government Egyptian
newspaper Al-Ahram that "Egyptian contacts with several Hamas leaders resulted
in preliminary, positive results in the shape of a conditional agreement to hand
over the Israeli soldier as soon as possible to avoid an escalation. But
agreement on this has not yet been reached with the Israeli side."
Gideon Meir, a senior Israeli Foreign Ministry official, said Israel did not
know of such an offer and would have no comment until later Friday.
"The soldier will only be released unconditionally and there will be no
negotiations with a gang of terrorists and criminals," Meir told The Associated
Press. "There is nothing to talk with them about."
Earlier, Israeli Defense Minister Amir Peretz said significant diplomatic
developments were possible, though he did not indicate there had been a
breakthrough.
"Right now, our thoughts are focused on the unconditional liberation of the
kidnapped soldier," he said in a speech to air force graduates. "The efforts to
bring about his return are being carried out intensively through various
channels."
Israel said the crisis will end when Cpl. Gilad Shalit is released.
"If the Palestinians act now to release Cpl. Shalit and hand him back to us
... we would immediately initiate a dramatic reduction in tension," Israeli
Foreign Ministry spokesman Mark Regev said. "He is the primary issue, he is the
primary reason for the crisis."
After previous diplomatic efforts by Egypt, Jordan, France and other nations
failed, Israel sent thousands of soldiers into vacant areas of southern Gaza on
Wednesday.
But on Thursday, Israel decided to delay a further offensive into northern
Gaza at Egypt's request, an Israeli official said. The official spoke on
condition of anonymity because of the secrecy of the diplomacy.
Israeli officials said the delay was also meant to
defuse possible international criticism of a broad ground campaign in Gaza. In
Moscow, foreign ministers from the Group of Eight industrialized nations called
on the Palestinians to free the soldier and urged Israel to act with restraint.