Cairo, Sept 3 (ZEENEWS.COM) Egyptian President Hosni Mubarak has disclosed that negotiations are ongoing to secure the release of the Israeli soldier captured by Palestinian militants, according to an interview published on Saturday by a semiofficial daily.

Israel is waiting for a Palestinian "initiative" that spells out Palestinian conditions for a prisoner exchange, Mubarak told al-Ahram newspaper. Their demands could include the freeing of Palestinian prisoners who are women or minors, he said.

The Egyptian President did not provide information on official involvement in the talks, but said that non-governmental groups from each side were participating. He did not name them.

Hamas-linked militants captured Cpl. Gilad Shalit near a crossing on the Israel-Gaza border on June 25.

The move sparked an ongoing Israeli offensive against Palestinian militants in the Gaza Strip.

The militants holding Shalit originally demanded all Palestinian women and minors be released from Israeli jails, then increased their demands to include another 1,000 Arab prisoners.

Okaz Saudi newspaper yesterday quoted unidentified Arab source as saying that Egypt was mediating in a proposal to swap 1,000 Palestinian prisoners in three stages starting three days after freeing Shalit.

Israeli government spokeswoman Miri Eisin denied Okaz`s report that an Israeli security delegation was currently in Cairo for talks on the issue. Israel has publicly refused calls for a prisoner swap.