CAIRO, (PIC)-- Mahmoud Al-Zahhar, a prominent Hamas leader, has denied Hebrew press reports that claimed Israel had agreed to release all 450 Palestinian prisoners on the list of Hamas's Movement in return for the release of its captured soldier Gilad Shalit.

Zahhar, who is attending the inter-Palestinian national dialog in Cairo, said in a terse press statement that the news were not true.

Hebrew daily 'Ha'aretz' published on Friday quoted sources in Cairo as saying that Israel had agreed to free all 450 prisoners demanded by Hamas as a condition for releasing Shalit.

The sources added that Israel put the condition that all those released prisoners should be deported outside Palestine.

The Hebrew radio said that Ofer Dekel, who is charge with the prisoners' exchange issue, briefed Israeli premier Ehud Olmert on Friday on results of his talks in Cairo with Egyptian intelligence chief on the exchange deal.

It added that Dekel is expected back in Cairo within the few coming days to resume talks on the issue.