Egypt mulls prisoner swap for Israeli 'spy'

Egyptian newspapers reported on Ilan Grapel's arrest on June 13 Cairo – AFP Egypt is mulling its own prisoner exchange with Israel, swapping a US-Israeli joint national suspected of spying for Israel for 81 Egyptians detained in the Jewish sate, the state-owned daily Al-Ahram said Sunday.
Ilan Grapel, who has been in custody since June 12, has been accused of being an agent of Israel's Mossad intelligence agency and of sowing sectarian strife and chaos in Egypt during the uprising which ousted president Hosni Mubarak in February.
Israel has strongly denied the claims, insisting the whole thing was a mistake and accusing Egyptian authorities of "bizarre behaviour."
Egypt mediated between Israel and the Islamist movement Hamas to secure a deal under which more than 1,000 Palestinian prisoners are to be freed in exchange for soldier Gilad Shalit, captured in 2006.
"All reports suggest that the Shalit deal will not be the only one concluded between Arabs and Israel in the coming days," Al-Ahram said.
It should "soon be followed by another deal, between Egypt and Israel, in which the spy Ilan Grapel... will be released in return for all Egyptians held in Israeli prisons," the daily said.
There are 81 Egyptian prisoners, including three children, held in Israel, the majority facing criminal charges, including illegal entry to Israel, drug trafficking and arms possession.
Negotiations on an exchange are almost finished, the paper said.
"The success of the Egyptian mediation of the Shalit deal and Israel's formal apology to Egypt for the death of Egyptian soldiers killed on the border by Israeli fire, certainly cleared the road for making the Grapel deal."