Beirut - A German mediator is expected in Beirut next week to finalize a prisoner swap between Israel and Hezbollah, a high- ranking Lebanese security source said Thursday.

The source said Gerhard Conard would travel to Lebanon after holding talks in Israel, where the cabinet is due to vote on the deal on Sunday.

The source said Condrad would meet Wafik Safa, a close aide of Hezbollah Secretary General Sheikh Hassan Nasrallah, who has been involved in previous swaps between Hezbollah and Israel.

The source said the International Committee of the Red Cross has been notified about the moves and all staff were put on alert for a possible swap in the next 10 days.

Last week, Lebanese and Israeli officials hinted at a breakthrough in the case of soldiers Eldad Regev and Ehud Goldwasser, who were captured in a Hezbollah cross-border raid in July 2006, sparking a 33-day war in Lebanon.

Regev and Goldwasser are believed to have been wounded during their capture and Hezbollah has so far provided no proof that they are still alive.

Through the UN-appointed German mediator, Israel has offered to release five jailed Lebanese guerrillas in exchange for the soldiers.

Hezbollah has been tight-lipped on progress in the indirect negotiations but Lebanese security sources said last week that final touches were being put to a swap deal.

The deal included the release of Samir Kuntar a Lebanese given four life terms for the 1979 murder of an Israeli family and a policeman. (dpa)