Significant progress ahs been made on the release of Israeli captive Gilad Shalit, a senior Palestinian official told Hizbullah's al-Manar television.

The official said that "an Egyptian envoy arrived in Israel Tuesday evening and met with senior Israeli officials, including Ofer Dekel, who have been appointed by the government to handle the Shalit case, and Amos Gilad.

"Great progress was registered during the meeting," he added.

According to the Palestinian source, "The Egyptian envoy returned to Egypt and informed the Egyptian leadership on the progress that has been attained. The envoy is expected to notify Hamas' senior leaders on this advancement."

Hamas confirmed on Wednesday that the negotiations on Shalit have been resumed. "The contacts through Egypt with the Olmert government have resumed," Hamas official Ali Barakeh said in a statement.