Damascus - Israel has accepted in principle Egyptian proposals for a truce with the Palestinian militant group Hamas, a senior member of the Palestinian factions based in Syria said Thursday.

Egyptian proposals to end hostilities between the two sides have been the focus of talks between Egypt's chief of intelligence, Omar Suleiman, and Israeli and Hamas officials.

Israel wants any truce deal to include the release of Gilad Shalit, an Israeli soldier captured by Palestinian militants in June 2006, as part of an exchange of prisoners with the Palestinians.

Israeli statements linking the release of Shalit to a ceasefire were part of electioneering by Israel's Prime Minister Ehud Olmert, who is fighting corruption allegations, and his possible successor, Defence Minister Ehud Barak, the member of the factions told Deutsche Presse-Agentur dpa.

The Damascus-based factions made a clear offer for a ceasefire with Israel that includes moves to be taken by both sides concurrently, said the source, who spoke on condition of anonymity.

The link between a ceasefire and the release of Shalit is not part of the Palestinian offer, the source said.

Negotiations for Shalit's release, the source explained, involve international mediation, including British efforts. The negotiations have gone a long way, but constitute a separate track, the source said.

The Israeli government refused Wednesday to confirm or deny it had accepted in principle Cairo's proposals. (dpa)